This Day On The Street
Continue to site
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

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 - Get Report) and Dunkin Brands (DNKN - Get Report), 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

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

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
Stocks Under $10

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

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

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
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
DG $81.91 0.00%
DNKN $46.50 0.00%
AAPL $93.74 0.00%
FB $117.58 0.00%
GOOG $693.01 0.00%


Chart of I:DJI
DOW 17,773.64 -57.12 -0.32%
S&P 500 2,065.30 -10.51 -0.51%
NASDAQ 4,775.3580 -29.9330 -0.62%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs