This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
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
TheStreet Open House

Jim Cramer's 'Mad Money' Recap: Making Portfolios Washington-Proof

Search Jim Cramer's "Mad Money" trading recommendations using our exclusive "Mad Money" Stock Screener.


NEW YORK ( TheStreet) -- Can investors Washington-proof their portfolios? That was the question Jim Cramer asked on "Mad Money" Wednesday as he tried to answer what everyone wants to know, "What should I own going into the looming government shutdown debate?".

Cramer said that investors can count on one thing: just as soon as the markets digest one bit of news, i.e. last week's Federal Reserve announcement, it will immediately move onto the next bit of news, which, unfortunately, involves another lengthy debate over the debt ceiling, health care and a probable government shutdown.

But while some companies blame Washington for their misfortunate quarterly results, others, including Apple (AAPL), a stock Cramer owns for his charitable trust, Action Alerts PLUS , Bed Bath & Beyond (BBBY) and Amazon.com (AMZN), all had terrific things to say of late.

Indeed, Washington doesn't seem to have affected sales of home-related items like paint or furniture, nor autos or boats or even homes themselves, according to Lennar (LEN).

Cramer said the key is to buy international companies such as Agco (AGCO), which he highlighted last week. General Motors (GM) would also be a good pick, as would EOG Resources (EOG), he said, as the oil boom doesn't wait for Washington.

Cramer also said that aerospace remains strong, as are the casino names. Technology stocks including Facebook (FB), another Action Alerts PLUS name, are also impervious to Washington.

No portfolio can be completely Washington-proof, Cramer concluded, but investors can certainly improve their odds by going global and leave U.S. stocks behind.

Executive Decision: Jim Whitehurst

In the "Executive Decision" segment, Cramer spoke with Jim Whitehurst, president and CEO of Red Hat (RHT), the open-source software provider that saw its shares fall 11% earlier this week after Wall Street decided the company's 2-cents-a-share earnings beat and maintained guidance weren't enough to justify its valuation.

Whitehurst said there are multiple ways to look at growth, and the Wall Street community decided to look at only one of them -- billings. Unfortunately, billings offers an incomplete picture, he continued. As deal sizes surpass $10 million, many companies are choosing to pay over time rather than all upfront, which makes longer-term cash flows a more important number to look at, Whitehurst explained .

1 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Jim Cramer and Stephanie Link reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

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
Stocks Under $10

Jim Cramer's protégé, 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
Try it NOW
Try it NOW
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

Jim Cramer's protégé, 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
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
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 16,805.41 +127.51 0.76%
S&P 500 1,964.58 +13.76 0.71%
NASDAQ 4,483.7150 +30.9230 0.69%

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