• Subscribe
  • Log In
  • Home
  • Daily Diary
  • Asset Class
    • U.S. Equity
    • Fixed Income
    • Global Equity
    • Commodities
    • Currencies
  • Sector
    • Basic Materials
    • Consumer Discretionary
    • Consumer Staples
    • Energy
    • Financial Services
    • Healthcare
    • Industrials
    • Real Estate
    • Technology
    • Telecom Services
    • Transportation
    • Utilities
  • Latest
    • Articles
    • Video
    • Columnist Conversations
    • Best Ideas
    • Stock of the Day
  • Street Notes
  • Authors
    • Bruce Kamich
    • Doug Kass
    • Jim "Rev Shark" DePorre
    • Helene Meisler
    • Jonathan Heller
    • - See All -
  • Options
  • RMPIA
  • Switch Product
    • Action Alerts PLUS
    • Quant Ratings
    • Real Money
    • Real Money Pro
    • Retirement
    • Stocks Under $10
    • TheStreet
    • Top Stocks
    • Trifecta Stocks
  1. Home
  2. / Investing
  3. / U.S. Equity

Cramer: 5 Market Themes for the Rest of 2016

It's a pretty broad spectrum, but they've definitely arrived.
By JIM CRAMER Jul 11, 2016 | 01:35 PM EDT
Stocks quotes in this article: VZ, T, GIS, WWAV, HSY, IMPV, IBM, MDVN, GE, MSFT, NXPI, AVGO, AMZN, TJX, DLTR, DG, WMT, HD, UA, LULU

The big themes for the second half are staring us in the face right now. I am talking about concepts to fall back on when this market sells off, and, like all markets, it will.

First, there's Pokemon Go.

OK, just kidding, in fact that's exactly the opposite of what I am talking about. I have no doubt that the Pokemon Go craze will continue to drive Nintendo higher and people might even want to buy Verizon (VZ) and Dividend Stock Advisor holding AT&T (T) off it. But that does bring me to my real first theme: 

Bond yield equivalent stocks. When our 10-year Treasury went below 1.5% and when many industrialized countries have negative rates -- first time in about 500 years for Dutch debt! -- you can buy a lot of stocks that had 2.5% yields that weren't all that interesting to people before this. It's a real theme. It counts. It's working and it includes real estate investment trusts, master limited partnerships, utilities and consumer packaged-goods stocks at pretty much every dip.

Second, takeovers: They should have been killed but they haven't, and that's what's so exciting about a WhiteWave (WWAV) or a Hershey (HSY) , both targets although only one has worked. If I were General Mills (GIS) , I would be tempted to compete with Danone if only to get the French company to pay more for the darned thing, as they are vicious competitors. This morning Imperva (IMPV) puts itself up for sale. Come on IBM (IBM) , make the deal. Do people see what's happening in biotech? Medivation (MDVN) is for sale, and there are multiple bidders. Who wants to be short in that environment?

Third: The Internet of Things is real and it's big and it doesn't have to do with just homes or cars. It's much bigger than that. Its industrial applications are gigantic, hence the deal between GE (GE) and Microsoft (MSFT) on Predix, which is a terrific technology designed to detect machines that you can't have break down without putting yourself potentially out of business. It's why I continue to like the Broadcoms (AVGO) and the NXP Semiconductors (NXPI) of the world even up here. Technology is broader than you think and includes a lot more sectors than just the personal computer. (WhiteWave, GE and NXP Semiconductor are part of TheStreet's Action Alerts PLUS portfolio.) 

Fourth: Retail can be bigger than just Amazon (AMZN) . The frugal stocks -- TJX (TJX) , Dollar Tree (DLTR) , Dollar General (DG) , Walmart (WMT) -- all make sense. But there's also the possibility that with credit expanding, the home thesis -- people spending on their home, hence the unstoppable Home Depot (HD) -- can be joined by a return in apparel with Under Armour (UA) and Lululemon (LULU) leading the way. Don't give up on retail and restaurants just when they are about to break out because the consumer is starting to spend again. (Amazon and Under Armour are part of TheStreet's Growth Seeker portfolio.) 

Fifth: Oil and the dollar will recede as the be-all and end-all of 2016. No, I am not saying that when oil rallies it won't help the bulls, it will. I am not saying the dollar can't go higher; if we take rates up, it will. I just don't think we will be bound by these two. Why? I don't think oil's as perilous anymore. It's range-bound and a range-bound commodity loses influence. Similarly, if the world's economies come back, the dollar will not be as important as earnings growth. We will know soon enough if the earnings are good enough and I will still refer to the dollar and oil regularly. I just think the linkage will become less pronounced and the value of earnings will come to the fore. And, if you ask me, it's about time.

Get an email alert each time I write an article for Real Money. Click the "+Follow" next to my byline to this article.

At the time of publication, Jim Cramer's charitable trust Action Alerts PLUS held no positions in stocks mentioned.

TAGS: Investing | U.S. Equity | Jim Cramer | Stocks

More from U.S. Equity

When Did We Stop Worrying About the Wealth Effect?

Peter Tchir
Jul 5, 2022 1:00 PM EDT

This looks like a market pricing in a recession/policy mistake.

An Encouraging Development in a 'Terrible' Stock Market

James "Rev Shark" DePorre
Jul 5, 2022 11:20 AM EDT

There's a bright spot, but it needs to be sustained.

Valuation and Market Sentiment Face Off Against the Charts

Guy Ortmann
Jul 5, 2022 10:45 AM EDT

Let's check the latest index charts and market data.

3 'Hiding Places' for Investors to Shelter in This Bear Market

Stephen Guilfoyle
Jul 5, 2022 10:00 AM EDT

These stocks have done me right of late, and are in better technical shape than the market.

Food for Thought on 2 Restaurant Stocks

Paul Price
Jul 5, 2022 7:00 AM EDT

Being approximately correct in your timing decisions is all you need to make a ton of money.

Real Money's message boards are strictly for the open exchange of investment ideas among registered users. Any discussions or subjects off that topic or that do not promote this goal will be removed at the discretion of the site's moderators. Abusive, insensitive or threatening comments will not be tolerated and will be deleted. Thank you for your cooperation. If you have questions, please contact us here.

Email

CANCEL
SUBMIT

Email sent

Thank you, your email to has been sent successfully.

DONE

Oops!

We're sorry. There was a problem trying to send your email to .
Please contact customer support to let us know.

DONE

Please Join or Log In to Email Our Authors.

Email Real Money's Wall Street Pros for further analysis and insight

Already a Subscriber? Login

Columnist Conversation

  • 12:01 PM EDT PAUL PRICE

    A Recent Director Buy in Children's Place (PLCE)

    Four of the most recent insider trades in Children...
  • 07:34 AM EDT PAUL PRICE

    A $525,000 Vote of Confidence on Macerich (MAC)

  • 09:49 AM EDT JAMES "REV SHARK" DEPORRE

    This Weekend on Real Money

    Stop Wishing, Hoping, and Praying and Take Control...
  • See More

COLUMNIST TWEETS

  • A Twitter List by realmoney
About Privacy Terms of Use

© 1996-2022 TheStreet, Inc., 225 Liberty Street, 27th Floor, New York, NY 10281

Need Help? Contact Customer Service

Except as otherwise indicated, quotes are delayed. Quotes delayed at least 20 minutes for all exchanges. Market Data & Company fundamental data provided by FactSet. Earnings and ratings provided by Zacks. Mutual fund data provided by Valueline. ETF data provided by Lipper. Powered and implemented by FactSet Digital Solutions Group.

TheStreet Ratings updates stock ratings daily. However, if no rating change occurs, the data on this page does not update. The data does update after 90 days if no rating change occurs within that time period.

FactSet calculates the Market Cap for the basic symbol to include common shares only. Year-to-date mutual fund returns are calculated on a monthly basis by Value Line and posted mid-month.

Compare Brokers

Please Join or Log In to manage and receive alerts.

Follow Real Money's Wall Street Pros to receive real-time investing alerts

Already a Subscriber? Login