Cramer's 'Mad Money' Recap: Bank on J.P. Morgan

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When the Federal Reserve is almost finished raising interest rates, it's time to buy bank stocks, Jim Cramer said Monday on "Mad Money."

Although the Fed might raise rates a couple more times, Cramer said we can be confident that there aren't another dozen rate hikes on the horizon.

When assessing which bank stocks to buy, the key is to look for banks that are cutting costs, because banking is a low-margin business.

Cramer said the bank with the best opportunity to bring costs down is J.P. Morgan Chase (JPM Quote).

An article in the Financial Times Monday said J.P. Morgan plans to hire 4,500 graduates in India over the next few years as part of an effort to send 30% of its back-office operations there.

While J.P. Morgan hasn't done much to cut costs since its acquisition of Bank One, Cramer said incoming CEO Jamie Dimon is on a crusade to cut costs. "Nobody else is coming close to them" among banks trying to take costs out, Cramer said.

You "can't make money protesting outsourcing," he said. But, "you can make money buying J.P. Morgan."

Loco for Conoco

Cramer mentioned an article in the Washington Post Monday that talked about competition between two pipeline proposals to be built from the Arctic, which might make a gambler want to place a bet on one pipeline or the other. The Alaska Gas Pipeline and the Mackenzie Valley Pipeline are being proposed, but only one can be built. If the McKenzie Valley Pipeline is chosen, Imperial Oil (IMO Quote) would be the big winner, Cramer said.

The Mackenzie Valley Pipeline appears to be leading the competition, but the outcome can't be known. So, why gamble when you can buy ConocoPhillips (COP Quote), Cramer asked, and make money no matter which pipeline is built?