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The only way people can try to make money in this or any market is to know how money managers think, Jim Cramer told viewers of his "Mad Money" TV show Thursday. They're the ones who "move stocks and are the market," he said. "When it comes to managing money, there are lots of rules, but only one commandment: Obey the business cycle," Cramer said. Right now, the cycle is "very bad," he said. For the next three months, Cramer believes, people need to go the supermarkets and drug stores to find stocks. Kellogg (K Quote) and Anheuser-Busch (BUD Quote), which he owns for his charitable trust Action Alerts PLUS, will both go to $55, Cramer predicted. Kellogg closed at $49.80, and Anheuser-Busch closed at $49.30 Thursday. In addition, he believes that both PepsiCo (PEP Quote) and Procter & Gamble (PG Quote) should go to $70, and Merck (MRK Quote) should hit $50.
Pepsi and Procter & Gamble closed at $64.14 and $61.05, respectively; and Merck closed at $40.06 Thursday.
All of these are "obvious trades," but there are also some lesser-known and exploited drug and supermarket stocks that could go high, Cramer said.
"A lot of this money has been realized," he said. "You want to find hidden stocks in these areas."
Cramer took his viewers down the aisles of his "Mad Money" supermarket, telling them about Danone (DA Quote) and Tootsie Roll (TR Quote), the only two unexploited supermarket stocks he likes.
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