Cramer on Defense
Cramer has gone on the record as saying, “defense stocks are as strong as ever and as cheap as ever” If John McCain makes it to the White House he believes you want to be in the defensive stocks. Cramer’s list includes:
Lockheed Martin (LMT), Northrup Grumman (NOC), General Dynamics (GD), L-3 Communications (LLL) and Raytheon (RTN)
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People may agree, or disagree with Cramer. I personally think most of his stuff is full of crap. He is a serious wealth of knowledge, but it’s his timing and trading skills (which he professes) that I question. Would I argue with him about company info or knowlege? Hell no. Not a chance.
Does Cramer really believe that McCain will take the White House? As far as reasons to trade defense stocks, this seems like a poor one. Not even debating the likely result of an election, but given that Cramer claims to be a market timer/trader, it would seem that this advice is a bit perplexing. The advice here is to “trade” stocks based on event catalysts that won’t take place until November at the earliest and will require even more time to truly develop. McCain having an impact on increased defense spending wouldn’t happen until months, maybe years, after the election assuming he even wins at all.