Cramer's 'Mad Money' Recap: A Good Year After All
Lang was equally bullish on the Russell 2000's outlook. His analysis of the iShares daily chart noted a bullish cup-and-handle pattern, with the MACD indicator once again signaling that the move higher has only just begun. Also of interest, Lang noted the first quarter has historically been a bullish one for the small-cap index, with 2008 being the only exception in recent memory.
Cramer said while he's not willing to base his entire 2013 trading strategy on technical analysis alone, the charts are so compelling that this year is shaping up to be a good one for the markets.
The Obvious Choice
Sometimes the best investment is the most obvious one, Cramer reminded viewers. So when the headlines point out that auto sales are on fire and the U.S. is on track to build as many as 15.3 million cars this year, the best way to play it is with the best-run U.S. automaker, Ford Motor (F).
Cramer said Ford shares are just off their 52-week high and deservedly so. The company now has three of the top 10 best-selling cars worldwide, including the Ford Focus, which recently took the top spot as THE best-selling car worldwide.The bear case against Ford has been its European business, which had been dragging down the entire company. But thanks to aggressive cost cutting, Europe is no longer a factor, said Cramer, and CEO Alan Mulally has indicated he's willing to cut even further if need be. Elsewhere in the world, sales are increasing for Ford in China, as the company now expects Asia to account for a full 32% of sales by 2020, up from just 15% in 2010. Latin America is also poised for a comeback, noted Cramer. Back at home, Cramer said, Ford has stability in its labor agreements through 2015 and its commodity costs are heading in the right direction, all of which has allowed the company to clean up its balance sheet to a point where its debt is finally being considered investment grade. Cramer said the debt upgrades will only hasten Ford's recovery as the company will be able to pay less in interest going forward.
Lightning RoundIn the Lightning Round, Cramer was bullish on Walgreens (WAG), Regeneron Pharmaceuticals (REGN), Nike (NKE), Triangle Capital (TCAP), Dicks Sporting Goods (DKS) and Facebook (FB). Cramer was bearish on Windstream (WIN), Molycorp (MCP) and Google (GOOG).
Looking AbroadWhile U.S. lawmakers have been busy fighting among themselves, the rest of the world has working on fixing their economies, Cramer told viewers, which is why one of 2013's biggest investing trends may become "anywhere but here." That's why he took a close look at markets around the globe to find some international opportunities that investors can use to diversify their portfolios. Cramer said that after decades of a flatlined economy, Japan may now be on the mend, thanks to a new prime minister who's willing to stimulate growth by any means necessary. He suggested the iShares MSCI-Japan (EWJ) as his ETF of choice in Japan. China also remains promising, said Cramer, as that country's leadership is finally getting things right, after a few years of getting things totally wrong. He said the iShares FTSE China 25 (FXI), an ETF which he owns for his charitable trust, Action Alerts PLUS, is his favorite China play. Cramer was also bullish on Europe, telling viewers they need to be invested in the region before the bottom becomes obvious to everyone. His ETF recommendation in Europe was the Vanguard MSCI Europe (VGK), another Action Alerts PLUS holding. Other areas of interest included the iShares S&P India Nifty 50 (INDY) to play the growth in India, the iShares MSCI Mexico (EWW), to gain exposure to the booming Latin American economy, and its counterpart, iShares MSCI Brazil (EWZ), as a way to play Brazil.
No Huddle OffenseIn his "No Huddle Offense" segment, Cramer once again sounded off against the so-called "risk on, risk off" investing strategy. He said this hedge fund lingo isn't really a strategy at all and certainly didn't serve investors well in 2012. Cramer said the S&P 500 delivered a 13.5% return in 2012, but also a 16% return if you included reinvested dividends. The problem is, if you're constantly trading in and out of stocks, you likely didn't get those dividends at all, let alone have a chance to reinvest them. Then there's the strategy itself. What's risky? What isn't? Europe was supposedly risky, yet both European stocks and bonds fared pretty well in 2012, especially if you picked the right ones. Even as a sector strategy, those that were deemed most risky turned out to be the best investments. In the end, "risk on risk off" ends up just turning into "buy high, sell low," said Cramer, and that's a strategy individual investors need to avoid in 2013. To sign up for Jim Cramer's free Booyah! newsletter with all of his latest articles and videos please click here. To watch replays of Cramer's video segments, visit the Mad Money page on CNBC. -- Written by Scott Rutt in Washington, D.C. To email Scott about this article, click here: Scott Rutt Follow Scott on Twitter @ScottRutt or get updates on Facebook, ScottRuttDC
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- 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 + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV