Cramer's 'Mad Money' Recap: The Benefit of Doing Nothing
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NEW YORK (TheStreet) -- Kicking the can down the road is working, Jim Cramer told "Mad Money" viewers Monday.
He reflected on the economic policies in both Europe and China over the past year, noting that this time last year U.S. markets were caught off guard by the faltering global economies. This year, the U.S. has become important again.
Cramer said "kicking the can" has been scorned but in retrospect it's been working. Last year the Europeans had no idea how badly their economies were faltering, but the strategy of endless delays gave the markets time to process and prepare for the worse-case outcomes. U.S companies, he said, have moved to contain their losses in Europe, which is why they're able to thrive this year.In China the same is true. As the Chinese have made small steps to stabilize their economy, U.S. companies have also been given time to prepare and adjust. More importantly, U.S. investors have taken the time to realize that not that many U.S. companies are even affected by China. Look at today's biggest winners, said Cramer, companies like Netflix (NFLX), Carmax (KMX) and Marathon Petroleum (MPC) are all domestic stocks with no European or Chinese exposure. Other winners today included Eli Lilly (LLY), Petsmart (PETM) and Chipotle Mexican Grill (CMG). No international worries there either. Even Cliffs Natural Resources (CLF), which is dependent on China, was able to rally today on the hopes of a "bad news is good news" scenario where things get so bad in China that the country is forced to act to save itself. Cramer gave "three cheers" for the kick-the-can strategy, as its helped put American stocks back on the map.
Know Your IPOIn the "Know Your IPO" segment, Cramer featured Workday, the enterprise resource management company that's set to come public later this week under the ticker WDAY. Cramer said Workday plays in the same space as Salesforce.com (CRM), only instead of offering cloud-based software solutions for sales and customer service, Workday is offering similar software for human resources, payroll and employee expense management. This is a red-hot sector, said Cramer, which is why Workday should be on everyone's radar.
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