Cramer's 'Mad Money' Recap: Fed and Breakfast

Cramer said that Anheuser Busch was too expensive, trading at 18 times future earnings based on growth of only 8%. And the company's purchase of Rolling Rock was "too little, too late."

Coke's 8% growth and valuation at 19 times future earnings also made the stock too expensive. That left Pepsi as Cramer's favorite.

The stock trades at 20 times earnings and has a growth rate of 11%. Perhaps more importantly, the company's business is diversified outside the cola business, unlike Coke.

The Paper Chase

Cramer wondered what has been happening over at Toll Brothers(TOL) to lead one family member to buy a newspaper company, The Philadelphia Inquirer. The personal investment doesn't impress Cramer.

Cramer added that the average growth of earnings at newspapers is not sustainable and could go as low as 2%. And Inquirer costs have already been cut by the previous owner, Knight-Ridder(KRI).

Cramer believes that viewers should invest in the housing market. "The homebuilders are the place to be when the Fed is done tightening," he said.

"Higher interest rates will mean home sales will slow. But those slow sales are already baked into the stock price."

The outlook is so bleak, that when the Fed makes the decision to stop tightening, the stock will take off.

The next sector to catch Cramer's eye is biotech, which he says "has been left in the dog house this year like the red-headed stepchild."

"The biotech index is down almost 7% for the year," he said.

His picks for the sector are Genzyme(GENZ), which just got upgraded, and Gilead Sciences(GILD), which was the next biotech pick because of an anti-HIV triple-play cocktail that is making its way through the company's drug pipeline. "The company is the player for HIV treatments," Cramer said.

The third pick was Celgene(CELG). "This is a $50 stock masquerading as a $40 stock," he said. It also has the only good remedy for multiple myeloma.