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Cramer's 'Mad Money' Recap: Pros and Cons

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NEW YORK ( TheStreet) -- The markets are full of "cons," Jim Cramer told "Mad Money" viewers Thursday, but there are a few "pros" out there as well.

He said that while it may seem like everything that was good is now bad and everything that was bad is now worse, there are a few silver linings. Cramer reminded viewers that, historically, being optimistic has been a winning strategy, even if that optimism is being very challenged at the moment.

So what cons are the markets worried about? The most obvious is the fiscal cliff, something the markets were hoping would be solved with new leadership in Washington. But now that the president is still the president and Congress is likely still gridlocked, is there any hope? Cramer said the Republicans have to know they must strike a deal since not striking one has already cost them the White House.

Then there are disappointing earnings. Cramer said earnings are always a game of expectations and expectations are still too high given the environment. Take Starbucks (SBUX). The company was trading in the low $50s when it reported over the summer, when expectations were too high. Shares immediately plummeted into the mid $40s.

This week, the company reported again and expectations were in line and shares rallied back into the low $50s. There's no reason to panic, said Cramer, prices just need to be readjusted.

Europe is another con against the market, said Cramer, but here, too, that's old news. Perhaps more important than a sagging Europe are hopes of a resurgent China, which might happen under new leadership in the coming year.

Hurricane Sandy put a damper on the markets as well, noted Cramer, but after the devastation comes rebuilding. Once people have their power turned back on and get back to work, things will start flowing again in the Northeast.

Cramer said the markets are clearly ratcheting down ahead of the fiscal cliff, but soon there will be capitulation, and that will be the time to buy, buy, buy.

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