This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

Cramer's 'Mad Money' Recap: A Rumor-Driven Market

Search Jim Cramer's "Mad Money" trading recommendations using our exclusive "Mad Money" Stock Screener.

NEW YORK ( TheStreet) -- Rumor has it the stock market is now being driven completely by rumors. At least that's what Jim Cramer heard on the Street Tuesday, he told "Mad Money" viewers. Whether it's a Spanish bailout, European deposit insurance or air strikes against Iran, if there's a rumor about it, the markets are likely trading on it.

But Cramer called "rumor investing" totally useless, adding that it's no way for anyone to invest their money. Why? Because the truth is that no one really knows anything until it actually happens and even when it does, there's still a good chance those events won't be directly affecting the stocks in your portfolio.

That's why Cramer continues to recommend sticking with stocks that don't have anything to do with Europe, stocks like American food companies, a la B&G Foods (BGS) or Dr Pepper Snapple (DPS), or domestic tobacco players like Altria (MO).

Cramer also recommended domestic housing stocks including Lumber Liquidators (LL) and paint-maker Sherwin-Williams (SHW) as safe bets with no European exposure. There is also the biotech sector, names like Arena Pharmaceuticals (ARNA) and Seattle Genetics (SGEN), both of which will continue the fight against life-threatening diseases no matter what the economies in Europe are up to.

Not everything is part of the European debacle, Cramer reminded viewers. "The sooner you realize that, the more money you'll make."

Hidden in Plain Sight

Europe's debt woes may make it harder to find strong stocks, Cramer told viewers, but that's no excuse for missing them. Case in point: Dollar General (DG) and Dunkin Brands (DNKN), two stocks that have risen 22% and 35% respectively this year, all in plain sight of savvy investors.

Cramer said there have been many times in the stock market's history where gains were only possible in a handful of sectors. There were times when only health care was making money, others when technology was the only place to be. So it should come as no surprise that in today's market, where Europe has taken the financials, industrials, energy and technology stocks off the table, stocks like Dunkin and Dollar General would be good places to invest.

1 of 4

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 17,156.85 +24.88 0.15%
S&P 500 2,001.57 +2.59 0.13%
NASDAQ 4,562.1890 +9.43 0.21%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs