TheStreet.com TV Recap: Betting on the Farm

If investors don't want to do the individual work on the "anointed" stocks like Johnson Controls (JCI), VF Corp. (VFC), Guess (GES) and Ralph Lauren (RL), they should consider the agriculture and oil bull markets, Jim Cramer said on TheStreet.com TV's Wall St. Confidential Web video Friday.

"The agriculture bull market is really powerful, but not for the reasons people realize," he told the show's host, Farnoosh Torabi. There were two farm bills, one of which "would have drastically cut back the subsidies to the agriculture business," Cramer explained.

However, this reform bill failed, "which poured the money into farmers." In turn, the farmers' first reaction was to buy more farm equipment, seeds and fertilizer. "So the farmers' bill was an earnings-per-share raiser for the agriculture complex," he said.

This market, Cramer said, includes stocks like Deere (DE), Monsanto (MON), Cummins (CMI), Bunge (BG), Agrium (AGU) and Mosaic (MOS).

Moving on to the oil bull market, Cramer said one of the things he's seeing here is a lot of deepwater-drilling announcements. "One thing that distinguishes this market is that it's never able to discount," he said. "It discounts the bad news constantly and discounts the good news not at all."

Therefore, when these announcements come out, a stock like Schlumberger (SLB) will move up a lot, and then keep moving up. It's a very "unhealthy" pattern longer term, Cramer said, because the stocks shouldn't be going up over and over again on the same piece of information.