Jim Cramer says this selloff isn’t bad, it’s creating a lot of buying opportunities in companies with brand loyalty.
There are many different ways to look at the market, Jim Cramer told his Mad Money viewers Wednesday. You can just look at the averages and assume everything is bad, or you can do a little homework and realize that real companies with tremendous brand loyalty are triumphing.
Instead of worrying about broken supply chains, ask yourself, “who benefits from fixing them?” Instead of fretting over rising commodity prices, find out who has the brands that can raise prices. And instead of assuming the entire economy suffers with rising interest rates, why not ask “who makes more money with higher rates?”
The stock market is not made up of interchangeable parts, it’s made up of individual companies. With a little research, you can easily find stocks like Bank of America (BAC) – Get Bank of America Corp Report, a bank with some of the best technology and loyal customers. Bank of America will make a ton of money with higher interest rates.
Then there’s Morgan Stanley (MS) – Get Morgan Stanley Report, which was once an unreliable, episodic financial company, but no more. Now, Morgan Stanley is making money hand over fist and investors should take notice.
Need more convincing? How about Procter & Gamble (PG) – Get Procter & Gamble Company Report, the once sleepy consumer products giant that on Wednesday delivered organic sales growth and terrific earnings that sent shares up 3.3%. Procter is able to offset rising costs because customers love the company’s brands and are willing to pay a little more to get them.
Finally, there’s UnitedHealth Group (UNH) – Get UnitedHealth Group Incorporated Report, the health insurer that unlike rival Humana (HUM) – Get Humana Inc. Report, isn’t having problems with Medicare advantage and once again delivered solid quarterly results.
If you just look at the Dow Jones Industrial Average and read the headlines, you won’t find great opportunities like these. But dig a little deeper, and this market selloff is creating a lot of opportunities.
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