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NEW YORK (TheStreet) -- This market has some huge headwinds that are getting worse, not better, Jim Cramer said on Mad Money Monday. Cramer said investors are just as likely to lose money as they are to make money on any given day, and there are a host of good reasons why.
Even with the U.S. economy gaining steam, Cramer said the rest of the world just isn't following our lead. Just last year it looked like Europe was improving, China was stabilizing and Japan had a plan. Fast forward just a few months and it now looks like Europe is stalled, as is China, and Japan, along with most of the emerging markets, all need a new plan.
Then there are the U.S. financials, a big part of the S&P 500, that has simply become too big to manage and is coming apart at the seams. Cramer reiterated that Bank of America (BAC) and JPMorgan Chase (JPM), two stocks he owns for his charitable trust, Action Alerts PLUS, are both on his sell list after this latest round of errors, restatements and disappointments.
Next there's housing, which continues to have a difficult year as the hugely disappointing quarter from Realogy (RLGY) proved today. Mortgage rates are holding fast and home prices are on the rise again, both of which led to Realogy's 8.5% decline.
Finally, retail is holding back the market, said Cramer. Target's (TGT) announcement that it's firing its CEO is just the latest sign that while some retailers are improving, most are not.
Soft Drink Fizz
Are the tides changing in the soft drink market? One would think so if they saw how number three player Dr Pepper Snapple (DPS) has seen its shares rise 15% for the year, while the big boys of Cola-Cola (KO) and Pepsico (PEP) are showing declines and only slight gains respectively.
Cramer said there are many theories to explain this dichotomy. Dr Pepper derives 90% of its sales domestically, for example, and therefore shelters investors from international risk. The company is also strong with the Hispanic market, one of the few places cola sales are still increasing. Then there's the company's 15-cents-a-share earnings beat last quarter. Not too shabby.
But Cramer noted Dr. Pepper's earnings stemmed mainly from cost-cutting and not from organic growth. This means the company will have a hard time growing and justifying its gains going forward.