Jim Cramer, perhaps best known as the host of CNBC’s widely popular “Mad Money” stock-advice show, is bullish on truck stocks. Why? Because, according to the official Mad Money blog written on Mad Money web editor Tom Brennan, sometimes there are longer-term trends that outweigh short-term reality.
Brennan writes: “These are the longer-term trends in business that supersede any short-term fluctuations in the market or the economy. Like these Cramer faves taking place right now: the mobile Internet tsunami, agriculture, autos and aftermarket auto parts, cloud computing, shoes, aerospace and trucks.”
“Now, the benefit of trading these bull markets is that they lend you the confidence you need to weather those aforementioned fluctuations. Oil’s down? A bad unemployment number? China’s raising interest rates? Whatever—just use the weakness to buy your secular bull market stocks,” Brennan wrote.
The blog states that Cramer recommended buying into Cummins (NYSE: CMI) back on June 2. His belief was that there would be a resurgence in the truck market, and sure enough, Cummins rebounded, closing at $105.03 on Friday, up some 63% since June 2.