Mad Money Recap

Return to Article

Cramer's 'Mad Money' Recap: July 6

Scott Rutt

Click here for an archive of Jim Cramer's Mad Money recaps. Click here to get Jim Cramer's Mad Money Post Game video exclusively on TheStreet.com.

"There is no single piece of data that determines which way the economy is headed," Jim Cramer told the viewers of his "Mad Money" TV show Monday.

He said investors are making a big mistake if they allowed today's unemployment news to outweigh all of the other signs of a global recovery.

Is 9.5% unemployment bad for the economy? Cramer said of course it is, but it doesn't take away from Apple's (AAPL Quote) booming iPhone sales, or the Chinese demand for copper and steel. Unemployment also doesn't undo the effects of record housing affordability, nor $2.30 a gallon gasoline on the heels of $4 gasoline last year, he said.

Cramer said when he looks at the big picture, he sees a slow recovery coming, one that won't produce a lot of jobs or spending, but one that will produce a lot of profits from huge layoffs and falling commodity prices. This is good news for defensive names and high yielders like General Mills (GIS Quote), and Yum! Brands (YUM Quote), both of which he owns for his Action Alerts PLUS portfolio, he said.

Cramer also said that select companies will flourish, companies like UPS (UPS Quote) and United Technologies (UTX Quote), but not UAL Corp (UAUA Quote), parent of United Airlines.

Cramer said he does not see the market roaring to Dow 10,000, nor falling to Dow 6,300, rather slowing climbing to perhaps Dow 7,000 or even 8,000 if we're lucky. He stood behind stocks like Nordic American Tanker (NAT Quote), but said a diversified portfolio would be needed to profit from the meandering recovery.

Wanted: IRA Government Bond

In a new segment called the "Eureka Moment," Cramer tackled the question: "Where do I invest my retirement savings?" He said that with so many lackluster options out there for investors, the answer is something completely new.

Cramer said those investing for retirement have a problem, if their only options are CDs and bonds that offer safety but no return, or stocks, which may offer a decent return, but are too risky for many people to handle right now.

The answer, he said, lies in the creation of a new 30-year, 5% government bond that's offered exclusively for IRAs and 401Ks.

Cramer said by offering investors a safe alternative that will allow them to double their money in just over 14 years, the government would be able to restore investor confidence while being able to fund problems for job creation. He pleaded to Congress, and to Treasury Secretary Tim Geithner, to consider creating such a bond to help spark savings and investment in our country.

Health Care That Works

Cramer welcomed David Snow, president, chairman and CEO of MedcoHealth Solutions (MHS Quote), to discuss the state of health care amidst talks of sweeping healthcare reforms.

Snow reiterated his belief that the debate in Washington should not be on who pays the bills for health care, but rather why the bills are so high in the first place. He said that 96% of all prescriptions in the U.S. are for chronic and complex diseases, the kinds that Medco manages better than anyone else around.

Snow also said that obesity and diabetes is an epidemic here in the U.S. and that with 50% of patients not following their doctors' instructions, the problem is turning a manageable disease into a very ugly situation.

Snow and Cramer also discussed how Medco is not often recognized for its innovations in personalized health solutions, or how the company has won over $16 billion worth of new business based on those innovations. Snow said he's shocked how that company's multiple is so low given its 15% to 20% growth rate.

Cramer reiterated his buy on MedcoHealth.

Mad Mail

In this segment, Cramer told a viewer that he would not be a buyer of Zoltec (ZOLT Quote) for a retirement account. He said stable, high dividend paying stocks are the way to go.

Lightning Round

Cramer was bullish on Peabody Energy (BTU Quote), Arch Coal (ACI Quote), PPG Industries (PPG Quote), Old National Bancorp (ONB Quote), Walter Industries (WLT Quote), AT&T (T Quote), Verizon (VZ Quote), Boeing (BA Quote) and WR Grace (GRA Quote).

Cramer was bearish on Foundation Coal (FCL Quote).

Check out the latest edition of "Cramer's Take on Top-Searched Stocks" on Stockpickr.

Want more Cramer? Check out Jim's rules and commandments for investing from his latest book by clicking here.

For more of Cramer's insights during the Lightning Round, click here.