Jim Cramer's 'Stop Trading!': Hold On to Freeport

Even though the six-month outlook isn't great, the mining company is a 'layup' to be bought, Cramer says.
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Even though its economic cycle is over, Freeport-McMoRan (FCX) - Get Report is still a good play, Jim Cramer said on CNBC's "Stop Trading!" segment Wednesday.

"We're in a huge rotation out of late-cycle stocks like Freeport ... and into early cycle stocks like banks," Cramer said. But the copper and gold mining company is "a layup to be bought out by a

BHP

(BHP) - Get Report

or a

Rio Tinto

(RTP)

."

The short-term outlook for Freeport, however, is far less certain. Cramer urged investors to "forget about it for the next six months, because this cycle is over. ... The momentum guys have to get out of it like they're getting out of ag, like they're getting out of oil. ... Be respectful of the amount of money they run."

Cramer noted that investors are moving out of plays like Freeport and into the banks. "There are bailouts out there. These bailouts can occur. ... The move out to the banks makes a lot of sense."

If the fed funds rate comes down enough, Cramer says, the banks can mount a recovery.

Finally, of

Google's

(GOOG) - Get Report

recent decline, Cramer only offered, "Buy any retailer you want. I'm not talking about Google."

At the time of publication, Cramer was long Freeport-McMoRan.

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