Search Jim Cramer's "Mad Money" trading recommendations using our exclusive "Mad Money" Stock Screener.
NEW YORK (TheStreet) -- Higher taxes and disarray in Washington has caused 2013 to become the exact opposite of 2012, Jim Cramer told "Mad Money" viewers Monday. Cramer said all the stocks that investors fled from in 2012 are now the hot commodities of 2013.
Cramer said January usually sets the trends for the year, and this year the trends are to stay away from everything domestic and stick with big international companies that can offer growth.
This certainly is true of China, he said, where the iShares FTSE China 25 (FXI), a fund he owns for his charitable trust, Action Alerts PLUS, has been on fire. The trends in China are so strong, he said, that even stocks like Coach (COH), Starbucks (SBUX) and Wynn Resorts (WYNN) are all working again.Aerospace is an international business, noted Cramer, as are autos, which is why Boeing (BA) and Honeywell (HON) are up, along with Ford (F) and General Motors (GM). Biotechs have been held back by Europe, Cramer said, but no more, as Celgene (CELG) and Allergan (AGN) have proven. Even Banco Santander (SAN), the poster child for the European debt debacle, is now investable. So where does that leave things here in the U.S.? Cramer said that with Washington a mess and people now earning less in their paychecks, pickings are slim. He said housing-related stocks and anything that goes into a home still works, as does some financials and technology. However, for the most part, it's harder to make money in the U.S. when people have less to spend.
Playing MatchmakerWith the housing market on the mend, Cramer played matchmaker and suggested that Masco (MAS) should merge with Fortune Brands Home & Security (FBHS) to create a housing powerhouse. He said while both companies will likely have a strong 2013, they'd do even better as a combined company. Why would a Masco Fortune be a match made in heaven? Because while both companies have already restructured themselves and taken out a ton of costs, a combined company could take out even more, eliminating duplicate functions and dramatically increasing margins by also getting better pricing on materials.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $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
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV