"Instead of focusing on the morass that is mortgages," focus on the fact that long-term bond rates have gone down and what that will do to high-growth
stocks ," Jim Cramer said on TheStreet.com TV's Wall Street Confidential Web video Thursday. The interest rates for the 10-year Treasury have gone from 5.3% to 4.66%, and it looks like the "natural leader" in this market is Research In Motion ( RIMM), which Cramer said he's been saying all year. It also could be Intuitive Surgical ( ISRG) or Hologic ( HOLX), a stock he owns for Action Alerts PLUS . When asked about themes that are working, Cramer mentioned a video he did with TheStreet.com Internet reporter Vishesh Kumar in which he called VMware ( VMW) expensive. "It was probably a mistake by me to concur with that because high growth is not measurable in traditional P/E standards in an environment where interest rates are coming down," Cramer said. "You always want to graft high growth with ... lower rates, which means that we will pay even more for higher growth. "VMware has the possibility, as absurd as it sounds, to go to $80 or even $100, particularly because a lot of people put on the trade of being short VMware and long EMC ( EMC), which is a catastrophic and stupid trade to do when you have an unseasoned stock like VMware," he continued.
For back-to-school season, Cramer said Staples' ( SPLS) conference call tells him that PC notebook sales are really strong. "That's a core Intel ( INTC) product and Hewlett-Packard ( HPQ) product." Cramer owns both EMC and Hewlett-Packard for his charitable trust.