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For investors struggling to make sense of a volatile market, CNBC’s Jim Cramer said clarity comes from focusing on scarcity as a key determinant in stock performance.
“When in doubt, ask if there’s a shortage or glut of what the company in question sells,” Cramer said Wednesday night on “Mad Money.” “If it’s the former, then you can buy; and if it’s the latter, you better get out of dodge.”
Cramer called the framework “the best cheat sheet I can offer you at this point in earnings season,” adding that “shortages are true north, gluts are the kiss of death.”
However, that may not be obvious by simply looking at the performance of the major U.S. stock averages, Cramer said. On Wednesday, the Dow Jones Industrial Average
