Cramer: Looking for Direction? Look East
By Lee Brodie | CNBC – 36 minutes ago
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If you're looking for a new idea as you put money to work, Cramer said look to the east.
"I'd go very heavy with China stocks in 2013," he said.
For quite some time Cramer has advocated putting money to work in China despite Street chatter that the nation's white hot economy had cooled off.
Cramer has been unflinching in his belief that a slowing China was not akin to a slow China.
According to Reuters, since 2009, GDP has been no worse than 7.4%, while USA and Europe's is nearly zero.
And new results suggest the economy of China is starting to percolate strongly again. According to Reuters, China's annual economic growth may have quickened to surprisingly robust 7.8% in the fourth quarter, or higher.
Although China can be difficult to gauge, Cramer believes Alcoa effectively confirmed the thesis.
In its latest release, Alcoa cited China as the major factor behind its improved outlook. CEO Klaus Kleinfeld said demand in China, the world's largest aluminum user, will grow 11 percent this year to 23 million metric tons as stimulus spending announced by the country's new leadership begins to show its effect, as the whole Chinese economy accelerates.
"In fact, Kleinfeld is confident that when the government unveils its complete plans for growth in February they are going to really dazzle everyone, and maybe accelerate expansion to 11%, which would be far higher than anywhere in the world" said Cramer.
Considering the market is no stranger to China driving global growth, Cramer believes now is the time to position - before it's all priced in.
"Owning a basket of beaten down stocks in a Chinese market that's emerging from a huge bear mauling? That's my style," he said.
Sentiment: Strong Buy