The research analysts at the brokerages firms have decided that they don't want market players to own retail stocks anymore, but this is incorrect, Jim Cramer said on his
"RealMoney" radio show Friday.
These analysts believe the retailers "have gone up way too much, way too fast," and that now it's time to lighten up on them. But these analysts are wrong, and the retail stocks are still cheap, especially when compared with stocks such as
, Cramer said.
"I believe you'll make money if you hold onto the retailers," he said, adding that
are still good and worth owning.
Cramer said he believes retail continues to be a good place to be because discretionary spending is higher than it used to be.
has seen a "tremendous acceleration of spending at Olive Garden and Red Lobster," he added, rationalizing that these restaurants would not be doing well if "people felt poor."
"When these places do well, it shows me that the economy is better than expected and that the consumer is alive," Cramer said.
It's wrong when people sell stocks that break out of their ranges, after being stuck in the mud for a while, he went on to say. When a stock breaks out, that's when it starts "galloping."
This is what's happening with the retailers, Cramer said. People should not take money off the table right now, he stressed, because retailers "are still going higher."
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