For those who don't have the time to pick individual stocks, Cramer said he'd stick with index funds and the SPDR Gold Shares (GLD), which tracks the price of gold. Investors must avoid any ETF that rebalances daily, however, as those are a sure-fire way to get burned.
When Bad Things Happen
Sometimes bad things happen to good stocks, Cramer told viewers. That's certainly the case in today's market where money is rotating out of consistent growers and back into the cyclicals.
Cramer explained that after the Fed confirmed the economy is growing earlier this week, the money immediately began shifting away from consistent growth names like Salesforce.com (CRM) and Gilead Sciences (GILD) and into slower growing names like Hewlett-Packard (HPQ), Intel (INTC) and even Microsoft (MSFT).
While there's nothing wrong with the faster-growing stocks, fund managers are simply looking for the explosive growth that these beaten -down companies could possibly deliver with a genuine expansion in economic activity.Stocks like AT&T (T), Caterpillar (CAT) and Nucor (NUE) are once again in demand, Cramer concluded, and will be until they fail to deliver what investors are expecting.
Lightning RoundIn the Lightning Round, Cramer was bullish on Teledyne Technologies (TDY), Jack in the Box (JACK), Unum Group (UNM) and Baidu.com (BIDU). Cramer was bearish on Sony (SNE) and Changyou.com (CYOU).
Check Out Our Best Services for Investors
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
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
- Model portfolio
- Stocks trading below $10
- Intraday trade alerts