Friday, July 29, 2011

[Video] Cramer's 7 Secular Bull Markets

'Always a bull market somewhere'.  I like most of these groups although I'd focus on high end retail (consumer), technology with pricing power or hyper growth, and agriculture.  I do like Cummins (CMI) and have for years, but not sure about the entire group.  The chemical makers (which he labels plastics) actually have had quite a nice earnings season but if the globe truly slows down over the coming year, they tend to get hit hard.

Aerospace: This is a long-term thesis that there is demand for new, more fuel efficient planes, Cramer said. In this space, he would look at Boeing [BA], Honeywell International [HON] and Precision Castparts [PCP].

Oil and Gas: There is a real need to find more oil and gas because it is so scarce, Cramer said. Several companies have developed technology to help discover more oil and Cramer thinks oil service giants Baker Hughes [BHI], Schlumberger [SLB], Weatherford [WFT] and Halliburton [HAL] are all buys.

Trucks: A massive number of deferrals on new truck orders during the recession, as well as new environmental rules have helped create pent-up demand for trucks, Cramer said. To play it, he suggests engine maker Cummins [CMI].

Plastics: A lack of new capacity and an increase in the non-neutral portion of the feed stock has lead to higher prices, Cramer said. Companies like Dow Chemical [DOW] and Airgas [ARG] are benefitting from these developemnts. Cramer thinks both names are a buy.

High-End Retail: The rich are staying richer, so the luxury brands are working, Cramer said. He likes Tiffany [TIF], Coach [COH], Nordstrom [JWN], V.F. Corp [VFC] and Phillips-Van Heusen [PVH ] in particular.

Agriculture: With farmers planting more crops, Cramer said there are several plays to consider. He likes fertilizer maker Potash [POT], equipment maker Deere [DE] and DuPont [DD ], as well.

Technology: Tech companies that have strategies for the cloud, social media or mobile if they're linked to Apple [AAPL] are all working right now, Cramer said. Examples include Amazon [AMZN] and Google [GOOG]. Aside from that, tech is pretty ugly right now.

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