Jim Cramer - Stocks Aren't Getting the Inflation Memo

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There have been quite a lot of negative story lines lately. The doom and gloom people seem to want a lower stock market. They are from the bureau of misinformation. People were saying that sales would be down. All of the retailers posted great sales. I guess they didn't get the memo that they were supposed to have bad quarters.

We were supposed to be worried about the bond auctions in Europe. It was supposed to be terrible, but instead it was fabulous. The worst story is that raw costs are going up. The thesis is that if a company can't pass on its inflation costs, then you need to sell the stock. Commodities are still the huge bull story. And there are companies that will be hurt, like the airline stocks. You should sell them all.

It is hard to hear any good news over all the negativity. Oil and Steel companies are doing great. You can read all about it in the Negative Street Journal. Companies like Hershey's and Kellogg were supposed to be hurt, but they did so great. Another thing to be worried about is the rise in labor costs. But there is a huge amount of people who are still looking for jobs. These anti-stock columnists are working against you and your money. They want to keep you out of stocks and keep you in fixed income assets.

You want to stay diversified and pick up some dividends and some growth. KMP might come through with a higher dividend. There is a related IPO, but there isn't much cause for concern there. JC Penny (JCP) and Sears (SHLD) will both perform according to the economy, which is getting better, so neither of those are bad picks.

MTW would have broken you even over the past year. It would be better to invest in Alcoa (AA), which could be the best performing stock in the Dow. Corporate America is not getting the inflation memo yet.

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News & Politics

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• Jim Cramer
• Mad Money
• Investing
• Treasuries
• Gold
• Silver
• Dollar
• Federal Reserve
• inflation
• interest rates
• capitalism
• free markets
• austrian economics
• benjamin graham
• value investing
• bershire hathaway
• stocks
• stock market
• george soros
• jim rogers
• marc faber
• ron paul
• john stossel
• judge napolitano
• alcoa
• dow jones

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