Cramer: Europe Is the New Swing Factor

Why do people keep talking about how industrial and tech names still seem undervalued even after this remarkable run? I think I have the answer: Europe. Just last week on "Mad Money," I interviewed the CEOs of Avnet (AVT), PPG (PPG) and Eaton (ETN) -- three great American corporations that do a huge amount of business overseas. All of these companies, like so many terrific U.S.-based enterprises, diversified into Europe many years ago as they recognized that the European Union opened up a gigantic market of 700 million people, all served by one currency. We forget that, before the euro, it was difficult to do business in Europe because of all the different fluctuating currencies and interest rates in each country. The euro truly did unite Europe when it comes to commerce, and it enticed our companies to buy and build there with alacrity.

So we have Avnet, the technology superstore; Eaton, the electrical-equipment concern; and PPG, the proprietary-coatings-and-glass company. These three have represented the cream of the crop in their respective industries, and each company knew it offered superior products and that it could take share from the locals....468 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.

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