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People are giving up too easily, Jim Cramer told his Mad Money viewers Thursday. The markets are seeing huge sector rotations that can only be characterized as panic, mixed with over-ownership by fund managers.
Cramer said the industrials were the hot place to be just two weeks ago but have since been sold voraciously... just in time for 3M (MMM) , General Electric (GE) and United Technologies (UTX) to all post strong quarters.
Investors also gave up on oil, only to miss an amazing $7 rally. The same is true of Apple (AAPL) , a stock Cramer owns for his charitable trust, Action Alerts PLUS. He said analysts are treating Apple as a hardware company, ignoring its service revenue potential.
Finally, there's health care, which has become an easy target for all of the major political candidates, who have sent everything related to pharma and biotech sharply lower despite the huge potential these companies still offer.
Cramer's advice? Pick through the rubble and start buying some of the best of what's being tossed out. There's no hurry, however. Buy in stages as the markets continue to gyrate.
Blame the Fed
The Federal Reserve needs to do its homework and listen to the conference calls of American manufacturers, Cramer proclaimed. The Fed's actions are hurting companies and stunting our economic growth.
While falling short of repeating his famed "They know nothing" Fed rant of 2007, Cramer chastised the Fed for sacrificing American jobs in the name of non-existent inflation.
"We're only beginning to feel the effects" of the Fed's quarter-point rate hike, Cramer said, as it's becoming markedly harder for U.S. companies to do business overseas.
Cramer called out the conference call of Procter & Gamble (PG) as the perfect case study of the damage the Fed is causing. On the call, Procter's management detailed how current pressures in Argentina, for example, are costing the company $140 million. Procter also detailed why it's difficult, and costly, to hedge against these pressures for many currencies around the globe.
Cramer said the end result of the Fed's actions are U.S. jobs disappearing. Companies including P&G are forced to cut costs elsewhere to offset the effects of an unbridled U.S. dollar.