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: Picking the Right Stocks

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

NEW YORK ( TheStreet) -- The world's economies won't wreak havoc on your portfolio if you have the right stocks, Jim Cramer told his "Mad Money" TV show viewers Wednesday as he sounded off against the so-called "top-down" approach to investing.

Cramer said that according to the macro-economic thinkers, all stocks are tied to their respective economies. So if the economies are accelerating, stocks will, too. But if they're decelerating, stocks will also follow suit.

There's just one problem, however -- things just don't work that way.

Cramer called the top-down approach "lazy thinking" because, in reality, the correlation just isn't there, especially if investors are picking the right stocks. He said with the interest rates in U.S. Treasuries expected to remain near zero for at least the next two or three years, stocks with dividends north of 3%, 4% and even 5% are the only place to be. Plus, with only 10% of mutual funds currently beating the S&P 500, investors will see a voracious appetite for stocks as money managers race to catch up.

Cramer once again railed against the notion that individual investors are better off simply investing in index funds rather than picking their own stocks. He said if investors do their homework, they can choose a small portfolio of stocks that will easily beat the averages and most mutual funds as well.

To illustrate his point, Cramer went through a list of his top holdings for charitable trust, Action Alerts PLUS .

He said that CVS Caremark (CVS - Get Report) remains his top holding as the company continues to pick up business from Express Scripts (ESRX). His second-largest holding, Apple (AAPL - Get Report), has the ability to grow in spite of economic weakness.

Also making the list is J.P. Morgan Chase (JPM - Get Report), a bank that's making money on mortgages here in the U.S. while its losses in Europe continue to wane. Boeing (BA - Get Report) is another holding as the seven-year aerospace cycle is just now gaining steam. Finally, Schlumberger (SLB - Get Report) is a play on the rising price of oil.
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
MM $0.00 0.00%
AAPL $93.74 -1.15%
BA $134.80 0.00%
CVS $100.50 -0.70%
GILD $88.21 -9.06%


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