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NEW YORK ( TheStreet) -- Don't bet against this economy, Jim Cramer said on "Mad Money" Wednesday. He told viewers they can no longer afford to stay complacent. If you own a stock solely for its high dividend yield, it's time to start taking some profits.
Cramer said he can't blame the droves of investors who have piled into high-yielding stocks over the past few months. He said the Federal Reserve created the perfect environment with low interest rates for high-yielding stocks to thrive. There literally has been no competition from bonds, he said, which made stocks the only appealing game in town.
But with the housing market rebounding sharply thanks to a shortage of homes, the reign of big dividend payers may be coming to an end, Cramer continued. He said the strong housing report this week sent the utilities, REITs and master limited partnerships down sharply yesterday and the selling continued with the high-yielding drugs, foods and consumer products stocks today.The data from the economy are getting too good, said Cramer, and investors can no longer afford to ignore them. The market has begun pricing in higher interest rates, which means investors need to start taking profits and wait for yields to rise before considering buying back into these stocks that have been such a safe bet for the past few months.
Executive Decision: Dan DiMiccoIn the "Executive Decision" segment, Cramer spoke with Dan DiMicco, executive chairman at Nucor (NUE), the steelmaker that's at the forefront of using cheap, domestic natural gas to increase America's competitive edge in the global economy. DiMicco called the new oil and natural gas technologies in our country a "massive game-changing event," saying they can transform domestic manufacturing. Nucor's recently announced partnership with Encana (ECA) is one such example, he said, as they will be investing a combined $2 billion in U.S. infrastructure. DiMicco also took a hard stance on what he called "extreme exporting" of our abundant natural gas supplies. He noted that studies have shown that using our own gas has twice the economic impact as exporting and creates eight times as many jobs. DiMicco added that he's not against exporting 10% or 15% of our supply, but with 20 export projects currently on the books, we could end up exporting as much as 40% of our supplies, a move that would have a big impact on our economy.
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