Jim Cramer's Stop Trading! New Leadership

Cramer says a relative scarcity of shares helps Caterpillar, Boeing and others.
Author:
Publish date:

The market's current strength is being fed by well-capitalized companies whose managers consider too much greed "unseemly," Jim Cramer said on

CNBC's

"Stop Trading!" segment Friday.

Cramer listed

Alltel

(AL) - Get Report

,

Boeing

(BA) - Get Report

,

Deere

(DE) - Get Report

,

3M

(MMM) - Get Report

and

Caterpillar

(CAT) - Get Report

.

"These are companies where insiders don't have a lot of stock," Cramer said. "They tend to be from small towns where it's unseemly to line your pockets with stock options. They're well capitalized." Cramer said the market gets a "galloping effect from these major industrials, because there's no supply" of stock, unlike in the late 1990s, when market leaders such as

Cisco

(CSCO) - Get Report

and

Intel

(INTC) - Get Report

flooded the market with shares.

Cramer said certain commodity companies are poised to benefit from price inflation.

Terex

(TEX) - Get Report

and

American Standard

(ASD)

have "passed on more

costs than they've taken in," Cramer said. "These are companies that thrive in this somewhat moderate inflationary environment, which they haven't seen in years."

Even with rates rising, Cramer said, brokerages such as

Goldman Sachs

(GS) - Get Report

and

Lehman

(LEH)

should keep doing well. Cramer called the shares "proxies people reach to when we have a bullish tape," because they're "always positioned right." Because of their work in the derivatives markets, the stocks are "the other side of the

CME

(CME) - Get Report

and

CBOT

(BOT)

moves."

Jim Cramer is a director and co-founder of TheStreet.com. He contributes daily market commentary for TheStreet.com's sites and serves as an adviser to the company's CEO. Outside contributing columnists for TheStreet.com and RealMoney.com, including Cramer, may, from time to time, write about stocks in which they have a position. In such cases, appropriate disclosure is made. To see his personal portfolio and find out what trades Cramer will make before he makes them, sign up for

Action Alerts PLUS. Listen to Cramer's RealMoney Radio show on your computer; just click

here. Watch Cramer on "Mad Money" at 6 p.m. ET weeknights on CNBC. Click

here to order Cramer's latest book, "Real Money: Sane Investing in an Insane World," click

here to get his second book, "You Got Screwed!" and click

here to order Cramer's autobiography, "Confessions of a Street Addict." While he cannot provide personalized investment advice or recommendations, he invites you to send comments on his column by

clicking here.

TheStreet.com has a revenue-sharing relationship with Traders' Library under which it receives a portion of the revenue from Traders' Library purchases by customers directed there from TheStreet.com.