Cramer's 'Mad Money' Recap: Banking on the Baby Boomers

Click here for an archive of Cramer's "Mad Money" recaps.

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Editor's note: The following is a recap of the May 29 show, which was rebroadcast on Friday, July 14.

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As 78 million self-indulgent baby boomers start thinking about retiring, we need to begin thinking about where they are going to be spending their money and time, Jim Cramer told viewers of his "Mad Money" TV show Friday.

Today he said he's focusing on retirement and looking at the best-of-breed travel and leisure stocks that should make people money. Although many might find retirement boring, he assured his viewers that it could make them money.

However, he doesn't expect all of these leisure stocks take off right away, he emphasized. Some of these are stocks that people shouldn't buy right now because they have recently peaked. He said he wants people to pay attention to the stocks and look for good entry points.

Long term, these stocks should make you money, he said. But short term, be careful.

The baby boomer generation is status conscious, and when they travel, they want the best accommodations and want to be catered to and pampered, he said. Therefore, Cramer started his travel, leisure and luxury picks with Four Seasons (FS Quote).

When the threat of terrorism is high, Four Seasons gets smacked down because Wall Street thinks people stop traveling during this time. The company performed badly over the past year because of worries about terrorism and competition from rival Ritz-Carlton. But you can't keep a good company down, and that's why Cramer believes people can buy Four Seasons on weakness as the baby boomers start to retire.

When a caller asked about a midlevel hotel play that the budget-conscious baby boomer might use, Cramer suggested Marriott (MAR Quote), although it is not a best-of-breed play, he said.

Also, Starwood Hotels & Resorts (HOT Quote) is a stock Cramer believes is on its way to best-of-breed status, he said. With its St. Regis brand, Starwood can rival Four Seasons, and charge a lot more money, he said, adding that although Starwood isn't best of breed yet, it is well on its way in terms of making money.