Cramer's 'Mad Money' Recap: 7 Reasons U.S. Is Better Off Than Europe
NEW YORK (TheStreet) -- With the bears working tirelessly day after day to link the U.S. stock market with those in Europe, Jim Cramer told his "Mad Money" TV show viewers Monday that he's come up with seven reasons why the U.S. is not as bad as our European counterparts.
1. Many U.S. stocks have no European exposure. Cramer said there are countless companies, from retail and restaurants to regional banks and REITs, that have absolutely no exposure to anything related to Europe.
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2. Falling commodities are a good thing. Cramer said that after raising prices to combat rising commodity prices, the current fall in oil and other commodities is padding the bottom line at many companies.
3. The American consumer is on fire. Cramer said that consumer spending is good and is only going to get better as gasoline prices continue to fall and employment improves.
4. America creates great companies. While many believe that the U.S. doesn't manufacture anything anymore, Cramer said one thing that America does make is great companies like Apple (AAPL) , a stock he owns for his charitable trust Action Alerts PLUS, and the upcoming IPO of Facebook.
5. Takeovers are everywhere. Whether it's a plain old takeover or an activist shareholder, Cramer said companies are working hard to bring out value.
6. Even JPMorgan Chase (JPM) can recover. Cramer said that even with the cowboys gone rogue, JPMorgan, another Action Alerts PLUS holding, will be able to weather its newly minted losses without breaking a sweat.
7. Look where we are on the business cycle. Cramer said that America in on the rebound after our rescission, while Europe is still in the midst of its recession. Thanks to low interest rates, U.S. companies have great balance sheets and are ready to grow.
For all these reasons, Cramer said the U.S. markets are in far better shape than Europe, which is why the lingering euro troubles cannot keep our markets down for long.