Am I Diversified?
In the "Am I Diversified?" segment, Cramer spoke with callers and responded to tweets sent via Twitter to @JimCramer to see if investors' portfolios have what it takes for today's markets.The first portfolio included: Apple (AAPL), SPDR Gold Shares (GLD), Berkshire Hathaway (BRK.B), Eaton (ETN) and Allergan (AGN). Cramer said this portfolio was perfectly diversified. The second portfolio's top holdings included: Duke Energy (DUK), Annaly Capital (NLY), Ford (F), Linn Energy (LINE) and Boardwalk Pipeline (BWP). Cramer said this portfolio has too much energy and needs to sell Boardwalk and add a health-care name like Bristol-Myers Squibb. The third portfolio had: ARM Holdings (ARMH), CVS Caremark, ConEd (ED), Phillip Morris (PM) and iShares Silver Trust (SLV) as its top five stocks. Cramer said he was a fan of this portfolio and no changes need to be made.
No Huddle OffenseIn his "No Huddle Offense" segment, Cramer answered this question: Why are investors now willing to pay 18 times earnings for General Mills (GIS), when historically they've been willing to pay just 15 times earnings. Cramer said the multiple expansion in stocks like General Mills makes perfect sense for three reasons. First, the overall market multiple has been on the rise, so it only makes sense that General Mills' multiple would follow suit. Second, Cramer said General Mills is a terrific dividend payer, doubling its payout in just the last year years. Third, the tax rates on dividends that were expected to rise didn't, meaning that this bountiful yield remains far superior to that of Treasuries. Add all these together and it's easy to see why this terrific company with great management and a solid balance sheet continues to trend higher, Cramer said. 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