Jim Cramer's Portfolios of the Week - TheStreet

Jim Cramer's Portfolios of the Week

Here's what Jim Cramer's been talking about lately.
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Publish date:

By Roberto Pedone

WINDERMERE, Fla. (

Stockpickr

) -- According to Jim Cramer, investors need to adopt

a new methodology for picking stocks.

On Monday's "Mad Money" TV Show, he told viewers that under normal market conditions, stocks are valued by taking a company's future earnings times its multiple and getting its share price.

However, due to political risk from Obama, and the fact that Wall Street has become the president's public enemy number one, the markets are now paying less for stocks that are in his crosshairs and giving a premium to those that aren't. Cramer pointed out that the markets are so scared of Obama, that even a hint at what he might do will send market players to the sidelines for safety.

Cramer said he is worried about discretionary goods stocks, telecom stocks and utilities due to Obama's stance on consumer spending and cap and trade. He also thinks that energy stocks, health care, technology and industrials could see sharp declines. Cramer said that other than

Covidien

(COV)

,

Apple

(AAPL) - Get Report

and

Johnson Controls

(JCI) - Get Report

, all the other names in these groups could be vulnerable to big declines.

Cramer believes that the hardest hit sector will be the financial stocks, including

Goldman Sachs Group

(GS) - Get Report

. On a positive note, he said the material stocks and consumer staples stocks should actually trade higher as investors jump into these sectors for safety. Names he likes include

McDonald's

(MCD) - Get Report

and

Kimberly-Clark

(KMB) - Get Report

, because he thinks Obama can't possibly have issues with beef and tissues.

Recently, Cramer found opportunity in five stocks to protect against Washington's attack on business, stocks that could be Obama's next target and health care stocks that investor's must sell. Here are some Cramer highlights from over the past week as aggregated from his "Mad Money" TV show, the "Stop Trading!" segment on

CNBC

and his

RealMoney

blog posts. (These blog posts might require a

RealMoney

subscription).

Cramer's 5 Stocks for Bernanke's New Era

: Cramer thinks investors need to immunize their portfolios from Washington's next assault on business. On

Monday's "Mad Money" episode,

he said when Washington goes after the good guys, it's more important than ever to play defense. The

Cramer's 5 Stocks for Bernanke's New Era

portfolio includes Apple and

Schlumberger

(SLB) - Get Report

.

Cramer's Next Easy Target for Obama

: Cramer thinks the oil sector is Obama's next target. In a

Jan. 22 blog post,

he wrote: "Oil's next. Let's face it. A president who cannot get things done, who faces the rejection of the people, must attack entities that are perceived to be hated. He has to. It is right out of the playbook." The

Cramer's Next Easy Target for Obama

portfolio includes

Exxon Mobil

(XOM) - Get Report

and

Chevron

(CVX) - Get Report

.

Cramer's Must-Sell Health Care Stocks

: Cramer believes that the easy money has been made in a number of health care stocks. On

last Friday's "Mad Money" episode,

he said it's time to take profits in the health care stocks, now that Obama's fading healthcare reforms have finished taking the group higher. The

Cramer's Must-Sell Health Care Stocks

portfolio includes

Humana

(HUM) - Get Report

and

WellPoint

(WLP)

.

p

Cramer's Good Earnings That Could Right This Ship

: Cramer highlighted a number of good earnings reports that could bring the market correction to an end. In a

Jan. 25 blog post,

he wrote: "Of course there is

Google

(GOOG) - Get Report

, which I have now gone after closely, and all I can say is other than paid clicks (which were off a tad) and some revenue expectations that got too high, did anyone ACTUALLY ON THE CALL think it was bad? How do you not buy a $30-a-share earnings power story at $560?" The

Cramer's Good Earnings That Could Right This Ship

portfolio includes

Wells Fargo

(WFC) - Get Report

and

Intel

(INTC) - Get Report

.

Cramer's Cyclical Stock Sells

: Cramer thinks it's time to get out of the cyclical stocks. On

Wednesday's "Mad Money" episode,

he told viewers that with a slowdown in China, and the pressure from Washington, these once high-flying stocks will start to give back some of their recent gains. The

Cramer's Cyclical Stock Sells

portfolio includes

Vale

(VALE) - Get Report

and

Peabody Energy

(BTU) - Get Report

.

-- Written by Roberto Pedone in Windermere, Fla.

RELATED LINKS:

>>"Fast Money" Portfolios of the Week

>>Rocket Stocks for the Week

>>Diversified Dividend Portfolio

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(Editor's note: At the time of publication, Cramer owned Intel, Chevron, Apple, Goldman Sachs and Johnson Controls for his Action Alerts PLUS charitable trust.)

Stockpickr is a wholly owned subsidiary of TheStreet.com.

Roberto Pedone, based out of Windermere, Fla., 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.