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
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Cramer's 'Mad Money' Recap: Looking Abroad for Growth

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 Matchmaker

With 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.

1 of 2

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

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
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, 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
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

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.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

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.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 17,083.80 -2.83 -0.02%
S&P 500 1,988.27 +1.26 0.06%
NASDAQ 4,474.6410 +0.9440 0.02%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs