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By Roberto Pedone
PEWAUKEE, Wis. (
) -- According to Jim Cramer, if investors want to make money in the market,
. Cramer said that market players need to forget about "buy and hold" and the notion of investing only in index funds.
Cramer thinks investors can pick their own stocks if they're willing to put in the time and effort. In fact, Cramer believes that if investors do their homework, they'll have the edge over much of Wall Street. But homework isn't easy, and it's time consuming, so Cramer advised viewers to stay interested in the markets by speculating with up to 20% of their non-IRA portfolios.
Speculating in the markets is fun, and it can pay off in a big way. In fact, Cramer's speculative stock pick of the year has turned out to be a huge winner for anyone who followed his advice. Back on June 5, Cramer named
his speculative stock of the year. Since that recommendation, shares of Sallie Mae have risen 62%. Even after that huge move, Cramer still sees SLM trading much higher.
Recently, Cramer found opportunity in 12 stocks to play for an economic recovery, oil companies that benefit from being in Iraq and stocks worth buying before the end of the year. Here are some Cramer highlights from over the past week as aggregated from his "Mad Money" TV show, the "Stop Trading!" segment on
blog posts (these blog posts might require a
: Recently, Cramer dropped by the "Fast Money" crew and revealed some of his top economic recovery stock picks. On
he told viewers that
valuation makes sense and he doesn't see the stock dropping 10% in the future. The
: Cramer has noticed that some great stocks are trading as if they're commoditized. In an
, he wrote: "All of these stocks would be shoo-ins to go higher, but they are part of the commodity gravitational pull. Of course, I think that the best way to deal with this phenomenon, as we have learned, is to let the futures get you into great stocks at better prices." The
: Cramer sees opportunity in playing a number of oil stocks that will benefit from friendly relations with the Iraq government. On
, he told viewers that
will be a huge winner for investing in Iraq ahead of the competition. The
National Oilwell Varco
: Cramer is finding plenty of stocks worth buying with only 53 days left until the end of the year. In an
, he wrote: "These managers are itching to put money to work, and they fear that when October, a seasonably week month, is over, that will leave two months that have produced terrific rallies: November and December." The
: Cramer sees lots of positives in the market for those who care to look. In an
, he wrote: "The reaction to a simple upgrade of
by RBS shows you the intensity of the animal spirits." The
: Cramer believes a number of stocks will trade higher if oil goes to $85. In an
, he wrote: "We are in a totally ridiculous market and I think that you really can get some amazing turns in plain old S&P names, as we saw today, when oil moves." The
-- Written by Roberto Pedone in Pewaukee, Wis.
Stockpickr is a wholly owned subsidiary of TheStreet.com.
(Editor's note: At the time of publication, Cramer owned Vale, JPMorgan and BP for his Action Alerts PLUS charitable trust.)
Roberto Pedone, based out of Pewaukee, Wis., is an independent trader who focuses on stocks, options, futures, commodities and currencies. He is also an outside contributor to Beconequity.com and maintains the website Maddmoney.net, which he sold to Blue Wave Advisors in 2008. Roberto studied International Business at The Milwaukee School of Engineering, and he spent a year overseas studying business in Lubeck, Germany.