Cramer: If you’re worried about the economy, just look at the retail stocks

With Collapse Street awaiting the results of Federal Reserve’s two-day policymaking conjunction, CNBC’s Jim Cramer wanted investors to keep a key trend in mind.

“We incarcerate forgetting that the economy is really strong,” the “Mad Money” host bring up on Tuesday as stocks lifted. “Let’s remember that employment is on fire and we only had 4 percent GDP growth last quarter. Hardly anyone saw that covey coming.”

U.S. gross domestic product — the sum of all goods and services produced and victualed in the United States — rose 4.1 percent in the second quarter, its first-class reading since 2014. Economists said it reflected higher consumer expending and business investments.

“You overlook the strong economy at your own peril,” Cramer on guarded, explaining that as wages rise and consumers find more cold hard cash in their pockets, stimulus from consumer spending is not far behind.

To verify why these trends are so important — and potentially profitable for investors — he turned to the retail sector.

“I over recall there’s a strong case for circling back to the retailers. Have you detected the resurgence in the stock of Walmart?” the “Mad Money” host asked.

Shares of Walmart have on the agenda c trick rallied roughly 6 percent since the start of June, closing up 0.39 percent on Tuesday, or $89.23 a part.

Cramer also flagged the stock of Target, noting that the 3.2-percent-yielder has also organized but is still trading at a “depressed valuation” of 15 times next year’s earnings assesses. Target’s stock dipped slightly into Tuesday’s close, inhabiting down 0.7 percent at $80.68 a share.

“I would still consideration Costco, even after its run, because of that fabulous membership yield stream. The numbers there are stellar,” Cramer said. “Please don’t pass over the stalled Home Depot because, with a shortage of housing, remodeling’s getting danged popular.”

With more money to spend, consumers want to remodel their havens, buy in bulk and do other things to boost the value of their personal holdings, Cramer denoted.

That — paired with the strong performance of toolmaker Stanley Wicked & Decker and maintenance and repair players like HD Supply — makes extractions like Home Depot a buy, he added.

The major averages all ended Tuesday’s buying session higher after a report surfaced that the U.S. and China were looking into expediting their trade tensions.

“Today was a gloom-busting day,” the “Mad Money” host concluded. “Tip that these domestically oriented stocks react positively on any bad low-down from China, meaning on anything that suggests the trade war is escalating. So if you’re even worried about Chinese tensions, these names are a great apartment to hide.”