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: What's Going on Here?

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

NEW YORK (TheStreet) -- The market's weakness has nothing to do with the companies you're buying. The weakness is caused by hedge funds, initial public offerings and foreign money, Jim Cramer said Tuesday on Mad Money.

Cramer said he's had a hard time figuring out why two of his favorite stocks, Time Warner (TWX) and CBS (CBS), have been ravaged by sellers. Time Warner has a terrific dividend, it's buying back stock and it's pumping out hit programs one after another. Meanwhile, CBS is a hit machine, churning out series after series that are huge hits around the globe.

But then the news came out Tuesday of a major hedge fund returning nearly $2 billion to shareholders after huge redemptions. Two of that fund's major holdings were, you guessed it, Time Warner and CBS.

Then there's the selling pressure coming from too much supply. Cramer said that stocks are, after all, supply and demand driven. With so many new IPOs hitting the street and the lockup period for older IPOs now expiring, the flood of stocks for sale is simply too much for the market to handle.

Finally, Cramer said he's seeing huge money flows out of Russia and into U.S. bonds, something that's driving bond prices higher, making money managers think things are weaker than they really are.

Add all these market moving forces together and the traditional relationship between stock prices and earnings has become distorted, which is why things are so confusing, Cramer concluded.

An Impressive Oracle

There always a lot of armchair quarterbacking surrounding famed billionaire Warren Buffett and the holdings in his Berkshire Hathaway (BRK.B) conglomerate. But while many are critical of Buffet's holdings, Cramer said that overall he's impressed.

Among Berkshire's top holdings are some stocks Cramer owns for his charitable trust, Action Alerts PLUS. They include IBM (IBM), Procter & Gamble (PG) and US Bancorp (USB). Cramer said all three of these companies are solid performers.

Other Buffett holdings include Wells Fargo (WFC), a leader in returning capital to shareholders; American Express (AXP), another financial that survived the downturn fairly unscathed; Exxon Mobil (XOM), an oil giant with a great buyback program, and DirecTV (DTV), which is up a nice 13% for the year.

Among Berkshire's top 10 holdings, Cramer only found two, Coca-Cola (KO) and Wal-Mart (WMT), of which he's not a fan. That said, Coke is still a growth name overseas and Wal-Mart seems to have stabilized its decline, so even they may have an pretty good 2014.

Cramer said he's a buyer, not a seller, of Buffett and his eye for value.

1 of 3

Select the service that is right for you!

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 17,279.74 +13.75 0.08%
S&P 500 2,010.40 -0.96 -0.05%
NASDAQ 4,579.7890 -13.6380 -0.30%

Brokerage Partners

Rates from

  • 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