Cramer's 'Mad Money' Recap: The Ugly Truth

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Jim Cramer started his "Mad Money" TV show by asking his viewers if they were better off than they were four months ago when the big sell-off began. His answer: an emphatic "no."

With the exception of China, the one bright spot, Cramer said the news has been discouraging in sector after sector of the U.S. economy.

He said retail is "downright awful," with stores empty and no one buying anything. He said the auto industry is ailing and housing is awful without any serious tax credit to help homebuyers.

According to Cramer, aerospace has "fallen off a cliff," while there is softness in tech except for smartphones.

Cramer said the companies that figure to do well are those with business connections in China, which he said has $2 trillion in reserves and can do whatever it wants.

He expects Qualcomm(QCOM Quote) to fare well because China will be spending $40 billion on wireless infrastructure. And he said Pepsico(PEP Quote), which he also owns for his Action Alerts PLUS portfolio, has announced plans to build three plants in China.

Among the sectors he sees doing well are restaurant stocks such as McDonald's(MCD Quote) and Darden Restaurants(DRI Quote), which he says are benefiting from lower commodity costs, lower gasoline costs and lower labor costs.

In the health care sector, he liked the performance of United Healthcare(UNH Quote) and Medco Health(MHS Quote), both of which are cash rich and making their numbers.

Cramer: Riding the Rail