Cramer's 'Mad Money' Recap: Preparing for the Worst
Search Jim Cramer's "Mad Money" trading recommendations using our exclusive "Mad Money" Stock Screener.
So if the nation falls off the proverbial fiscal cliff, investors need to be ready with a game plan.Cramer said compromise appears to still be the enemy in Washington, with several congressmen digging in their heels and sticking to their previous vows to never raise taxes, no matter how desperately they may be needed. He said the current scenario feels much like the passage of the Troubled Asset Relief Program, or TARP, a few years ago, where politicians only got on board with the plan after the market fell by 10% and they realized just how bad things would become. Cramer predicted the markets will see their first leg lower during the last week of the year as nervous investors liquidate positions ahead of the new tax rules. Afterward, Cramer said, we're likely to see further declines every Thursday as jobless claims begin to rise. So how can investors protect themselves? Cramer said all stocks will feel the pain of the cliff, but those that will recover first will be those with the biggest gains before the cliff. He said the housing recovery will continue on, which means stocks like Home Depot (HD), Sherwin-Williams (SHW) and Whirlpool (WHR) will bounce first, as will the high-yielders like AT&T (T) and Verizon (VZ). Be ready to scamper out of the abyss, Cramer concluded, because after the markets fall by 10% or more, these stocks will be the ones to help us recover.
What the Heck?In his "What The Heck?" segment, Cramer turned the spotlight on Trimble Navigation (TRMB), a once-left-for-dead global-positioning company that is now flirting with its 52-week highs and is up over 18% in just the past 30 days. Cramer said he was amazed at what he found when looking into Trimble because the company is no longer just making commodity GPS sensors like everyone else. Trimble got smart, said Cramer, and evolved into communications, which then led to data modeling and analytics and finally gave the company an entire suite of software tools to help those in construction and other industries run their operations more effectively.
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 Plus 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