Cramer's 'Mad Money' Recap: Getting Tomorrow's Headlines Today (Final)
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NEW YORK (TheStreet) -- "Be afraid of the housing starts number due out tomorrow," Jim Cramer cautioned the viewers of his "Mad Money" TV show Monday. He said the reaction to the housing starts number that are scheduled for release Tuesday and the existing home sales report on Wednesday will most certainly take the markets lower. Cramer said he doesn't need a crystal ball to predict the headlines from tomorrow's and Wednesday's trading. He said the markets will fall as the economists are "shocked" by the poor performance in housing. Cramer wondered why these estimates are so high in the first place. "All of these estimates are unrealistic," said Cramer, given the unemployment rate and the expiration of the federal tax credit on new homes. He said the economists, and their macro views on the economy, have been predicting housing wrong demand month after month, and tomorrow will be no different. Cramer, on the other hand, said he takes his cues from the homebuilders themselves, who are far more cautious, and accurate, in their forecasts. So while the world is "shocked" by the housing numbers Tuesday and again on Wednesday, Cramer said investors should be using the weakness as a buying opportunity and should be adjusting their portfolios ahead of time. He said there is growing pent-up demand for new homes, and that demand will be unleashed soon. "Ignore the sirens of negativity," Cramer told viewers, "housing will get better." And in the meantime, use the market weakness and be ready for the wave higher.
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