This Day On The Street
Continue to site right-arrow
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: Now That's More Like It

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

NEW YORK (TheStreet) -- When the consensus changes, the buyers change, too, Jim Cramer told his Mad Money viewers Wednesday. That's why all of the stocks that were being sold Tuesday were suddenly being bought today. The markets simply changed their minds, literally overnight.

Cramer explained that previously, the general wisdom was that the economy was accelerating and things were getting better around the globe. But now the markets are betting the economy has peaked and we're slowly heading back downhill.

Read More: Falling Grain Prices Shift Landscape for Restaurants, Processors

That's why the high-growth biotech stocks were back in vogue, Cramer said, as were ecommerce stocks like Yelp (YELP). These are the stocks you buy when the economy is cooling, because they don't need a strong economy to thrive.

The cooling economy thesis was helped along by disappointing retail earnings from Macy's (M), a case where the analysts were way too bullish, but that won't matter to the sellers. The thesis was also helped along by continued falling commodity prices and low interest rates, trends that make investors willing to pay up for future earnings of high-growth companies.

These trends may not make sense, Cramer concluded, but nonetheless they are happening, which is why investors need to understand what's going on and plan accordingly.

Thank You, Russia

Things are really starting to look up for the American consumer, all thanks to, of all things, Russia. Cramer said Russia's decision to ban all U.S. poultry imports has been reported negatively in the media, but unless you're a chicken farmer the ban is very good news.

Cramer explained that almost immediately after the ban took place, prices for chicken, cattle, hogs and grains all started falling sharply. The building blocks of the American diet have just gotten cheaper, Cramer said, and that means more money will be left in consumers' pockets to spend on other things.

When the Federal Reserve last spoke, it noted that inflation was largely in check, except for a few key areas. But with food prices falling along with gasoline and natural gas, inflation will surely not be a problem going forward. Even home prices are seeing relief.

Read More: Want a Hydrogen-Fueled Car? It’ll Cost You Double

So while the media may imply that our economy is being harmed by Russia, in fact the boost in spending thanks to food price relief has only just begun.

1 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr 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

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Try it NOW
Only $9.95
Try it NOW
14-Days Free
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

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!
ZOES $32.42 0.00%
Q $67.26 0.00%
TPH $15.02 0.00%
AAPL $123.25 0.00%
FB $83.30 0.00%


DOW 17,712.66 +34.43 0.19%
S&P 500 2,061.02 +4.87 0.24%
NASDAQ 4,891.2190 +27.8570 0.57%

Partners Compare Online Brokers

Free Reports

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