Search Jim Cramer's "Mad Money" trading recommendations using our exclusive "Mad Money" Stock Screener.
NEW YORK (TheStreet) -- Investors looking to make money in the markets need look no further than the commodities, Jim Cramer told his "Mad Money" TV show viewers Monday. He said the strategy is simple, companies who need commodities to go higher are getting crushed while those who need commodities lower are thriving.
Cramer reminded viewers that there are a lot of places they could put their money. Bonds remain a dumb bet, he said, with continued low interest rates. Gold never goes out of style, he added, saying that gold remains the best-performing asset class over the past 11 years. Investing in commodities themselves isn't working, thanks to a slowdown in Europe and a stalled economy in China. But what about stocks that rely on commodities? That, Cramer said, is where the action is.Take a company like Procter & Gamble (PG), a company that by many metrics delivered horrible results. The market's reaction? Essentially flat, thanks in part to the fact that Procter uses a lot of commodities and paid a lot less for them this quarter. On the flip side, there's Cummins (CMI), a stock that trades in lock-step with commodity prices under the premise that if economies are slowing, there will be less demand for trucks. Cummins has been a one-way ticket lower, said Cramer. Commodity prices are the key to the rally in the restaurants and apparel makers, said Cramer, and the reason why soft drinks, transports and even the housing-related stocks can head higher. If a company does well when commodities fall, then its stock is doing great right now.
AIG in DemandDon't you wish there were big neon signs telling investors to "buy, buy, buy?" Well, Cramer said there was one this weekend, when a last-minute deal to offer a $5 billion secondary for AIG (AIG) priced at $30.50 a share, only to close at $31.84 and instantly make money for shareholders. Cramer said that AIG, a stock he owns for his charitable trust, Action Alerts PLUS, is perhaps the greatest financial turnaround of our time, and that the demand for its secondary proved it.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV