Cramer's 'Mad Money' Recap: Second-Half Playbook (Final)

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The key to smart investing is not reacting to the headlines of what's already happened but looking six months ahead and predicting what's going to happen, Jim Cramer told the viewers of his "Mad Money" TV show Friday.

Cramer reminded viewers that the stock market always looks into the future. He said it's easy to say things will get worse when they're already bad, but it's far harder to predict a recovery when the markets are at their lows.

Cramer then offered his predictions for the second half of 2009. First off, he said the turn in the housing market is upon us, and that means fewer foreclosures and more profits for banks like Wells Fargo (WFC Quote), a stock which Cramer owns for his charitable trust, Action Alerts PLUS. He also recommended Washington, DC area homebuilder, NVR (NVR Quote) as a housing beneficiary.

Cramer said the trucking industry is also at record lows, and he feels companies like Paccar (PCAR Quote) should benefit in the second half.

He also reiterated the multi-year move in the smartphone market, saying that Apple (AAPL Quote) and the smartphone component makers will also prosper.

Finally, Cramer predicted windfalls for the healthcare and natural gas sectors, as they too will recover during the second half of this year.

He said that investors need to take a chance and make predictions if they expect to get ahead, and that's why he's always looking toward the future.