As long as some people are scared of the stock market, there will be more money to be made, Jim Cramer told his Mad Money viewers Thursday. That's because sentiment plays a key role in just how high the market can soar.
Cramer reminded viewers that when everyone is bullish, that's a bad sign. But when some investors are scared, when there's money on the sidelines, then all the market needs is a spark to reignite their interest.
Cramer said when he's stopped on the street, most questions are about bitcoin and not stocks. Many investors still remember getting burned in 2008, or they feel they've already missed the move. Others fear that Washington could derail the markets at a moment's notice, while still others think they don't have enough money to invest.
But whatever the reason, there is still a lot of money waiting to enter this market, and that's why this market keeps heading higher.
There's money to be made, Cramer concluded; look at Apple (AAPL) - Get Report , an Action Alerts PLUS holding that just posted what Cramer called the greatest earnings blowout of all time. For years, Cramer's been telling viewers to own and not trade Apple, and today was just another reminder of why.
Executive Decision: Federal Realty Investment Trust
For his "Executive Decision" segment, Cramer again sat down with Don Wood, president and CEO of Federal Realty Trust (FRT) - Get Report , a stock that's down 10% for 2017, even after posting a three-cents-a-share earnings beat that included an 8.3% rise in revenues.
Wood said that the world is changing pretty quickly and Federal Realty is changing with it. He said after the financial crisis, investors wanted REITs that were pure plays on office or retail or residential, but in today's world, people want convenience and experiences -- and that means mixed-use properties or neighborhoods that include all three, along with lifestyle and entertainment options.
Federal Realty is not a retailer, Wood said, but they offer the types of properties that retailers are looking for.
Diversification is key in both investing and in real estate, Wood added, which is why no one tenant at Federal Realty accounts for more than 3% of their rents. No one tenant can "throw us off our game," Wood said.
Cramer said that Federal Realty remains his favorite REIT.
Play the Chip-And-Pin Revolution
Every day, there are billions of debit and credit card transactions processed. That's why Cramer continues to recommend stocks like Visa (V) - Get Report , Mastercard (MA) - Get Report and Paypal (PYPL) - Get Report . But there is another way to play the chip-and-pin revolution and that's with Global Payments (GPN) - Get Report , the merchant acquirer with shares that are up 48% for 2017.
Cramer explained that merchant acquirers are the companies that sign up merchants to accept credit and debit cards and maintain the merchant relationship, taking a small cut of every transaction processed. What makes Global Payments so attractive is the company's $3.8 billion purchase of Heartland Payments earlier this year, a deal that added more than 1,400 salespeople to Global Payments.
Despite the company's increased ability to grow, shares of global payments trade at just 22 times earnings, far less than the 27 multiple at Mastercard and Visa.
Over on Real Money, Cramer says that while he knows this rally has been amazing, as long as people are incredulous or scared, there's trillions of dollars on the sidelines that can still come in. Get more on his insights with a free trial subscription to Real Money.
Executive Decision: Dominion Energy
In his second "Executive Decision" segment, Cramer checked in with Tom Farrell, chairman, president and CEO of Dominion Energy (D) - Get Report , the utility that just hit a new 52-week high, despite the rising interest rate environment. Shares of Dominion currently yield 3.8%
Farrell said he was very excited about Dominion's latest partnership with Facebook (FB) - Get Report to build a large datacenter in central Virginia that will be powered completely by solar. He said the deal is similar to one Dominion already has with Microsoft (MSFT) - Get Report and is part of the reason why over half of our nation's Internet traffic passes through Dominion's sevice area.
Farrell was also bullish on Dominion's Cove Point natural gas liquefaction facility, which has already signed two customers for the next 20 years' worth of production. Dominion's Atlantic Coast pipeline is also on time and budget.
Cramer and the AAP team have updates on five big names in their portfolio, including Allergan (AGN) - Get Report and Broadcom (AVGO) - Get Report . Find out what they're telling their investment club members and get in on the conversation with a free trial subscription to Action Alerts PLUS.
In the Lightning Round, Cramer was bullish on JPMorgan Chase (JPM) - Get Report , Citigroup (C) - Get Report , TJX Companies (TJX) - Get Report , Broadcom (AVGO) - Get Report , MetLife (MET) - Get Report , Cognizant Technology (CTSH) - Get Report , DXC Technology (DXC) - Get Report , Exact Sciences (EXAS) - Get Report and UnitedHealth Group (UNH) - Get Report .
In his "No-Huddle Offense" segment, Cramer opined on the action in Tesla (TSLA) - Get Report and Facebook, two companies that both disappointed investors this quarter, but took very different approaches in delivering the news.
At Tesla, CEO Elon Musk was hopelessly optimistic, predicting that his company will be wildly profitable and successful once the short-term production problems with the Model 3 have been remedied. Musk continually over-promises and under-delivers for shareholders, but no one seems to mind.
Facebook announced they will have to dramatically ramp up costs to combat fake news and ads running on their network. Unlike Tesla however, Facebook was downbeat, tempering expectations so they can under-promise now and over deliver later -- the exact opposite of Tesla.
In both cases, Cramer said, he expects shares to rebound once the bad news has been digested, proving that both strategies can be successful, if you have the right kind of shareholder base.
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At the time of publication, Cramer's Action Alerts PLUS had a position in AGN, AVGO, AAPL, FB, C, TJX, DXC.