Jim Cramer's Stop Trading! Back to Banks

Rotate into banks as the yield curve normalizes.
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With the yield curve normalizing, investors are renewing their appetite for bank stocks, Jim Cramer said on

CNBC's

"Stop Trading!" segment Friday.

"This is one of those examples where there's only so much money to go around," Cramer said, noting that previously big performers such as

Goldman Sachs

(GS) - Get Report

,

Lehman

(LEH)

and

Bear Sterns

(BSC)

suddenly seem tired.

"People want to play the yield curve, so you can switch into

Wells

(WFC) - Get Report

without a problem," Cramer said. He said stocks such as Wells Fargo and

JPMorgan

(JPM) - Get Report

"have done nothing, they can play catch-up for a long time." Add in some big share buybacks, and "they can walk the stocks right up."

Elsewhere, Cramer noted a pattern in which certain companies are reporting big quarters, selling off, then bouncing back. He named

Allegheny Tech

(ATI) - Get Report

and

Valero

(VLO) - Get Report

, and said the same thing might happen with

Cummins

(CMI) - Get Report

.

Regarding

Microsoft

(MSFT) - Get Report

, Cramer said Friday's plunge is probably justified. "There are people who would very much like to start a position, but there's no sense that the selling is over."

"Vista is a year away, the spend is very bad," Cramer said. "It leaves you with very little reason to own the stock at all."

At the time of publication, Cramer was long Microsoft.

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