Cramer's 'Mad Money' Recap: A Ray of Hope

Cramer said he liked what he heard from Fed chief Ben Bernanke and FDIC chairwoman Sheila Blair.
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This article was originally published Feb. 25

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"Something remarkable happened today," an upbeat Jim Cramer told the viewers of his "Mad Money" TV show Wednesday.

He said that not only was there was an actual rally in the financial stocks, there might also be a ray of hope in the sector.

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Cramer credited today's rally to a man he's dubbed "the comeback kid,"

Federal Reserve

Chairman Ben Bernanke. He said after two days of testimony to Congress, Bernanke has let traders know that the sky might not be falling after all.

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Amidst the hours of typically uneventful testimony, Bernanke again told Congress that he's not a fan of nationalizing the banks, putting a damper on the rampant fears of Wall Street.

"Bernanke is a capitalist after all," said Cramer, who praised the Fed chair for offering at least some details of the government's plans.

Cramer was also elated to hear Bernanke talk of reinstating the uptick rule, which was put in place after the Great Depression, but recently repealed by former SEC Chairman Chris Cox. The uptick rule prevents short sellers from relentlessly beating down a stock by requiring an uptick, a moment of strength, before shares can be sold short.

Finally, Cramer said there was even more good news today. He said that FDIC Chairwoman Sheila Baird made comments that she may be considering another chapter from Cramer's recovery plan, forbearance. Cramer said in his mind forbearance, a tactic used in the 1980's S&L bailout, is exactly what the banks need today.

Cramer said after weeks of relentless selling and short selling in the financials, there might just be a little ray of hope on the horizon.

Gold Shines

Cramer said despite recent weakness, every investor needs to go buy some gold. He said while the price of gold may slip to $900 an ounce in the coming days and weeks, but there's still a strong case to be made for gold, as well as a lot of ways to play it.

According to Cramer, gold was severely overbought, and he's not surprised at the sharp selloff. But with the euro getting killed, gold is becoming a more attractive investment for the Europeans, and that will start the buying frenzy again soon.

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Cramer said there are a lot of ways to play gold. He's a fan of the

SPDR Gold Shares

(GLD) - Get Report

.

He said investors can also call their brokers and buy gold bullion, or visit usmint.gov and look into gold coins. But no matter how you decide to play, Cramer advised buying in stages, buying one-fourth of a position Thursday, then continuing in increments as prices fall.

Cramer said investors can also consider the gold stocks, but he cautioned that gold stocks are like no other and use their own set of metrics. He said his favorite gold stocks are

Agnico-Eagle Mines

(AEM) - Get Report

, and now also

Eldorado Gold

(EGO) - Get Report

.

He said both of these companies are increasing production, lowering costs, are less sensitive to changes in the price of gold and have a low price/net asset ratio.

Am I Diversified?

Cramer spoke with callers to see if their portfolios have what it takes. The first caller's portfolio included:

Nordic American Tanker

(NAT) - Get Report

,

Johnson & Johnson

(JNJ) - Get Report

,

Wells Fargo

(WFC) - Get Report

,

ConocoPhillips

(COP) - Get Report

and

Caterpillar

(CAT) - Get Report

.

Cramer called this mix of stocks the essence of diversification.

The second caller's top holdings included

Google

(GOOG) - Get Report

,

IBM

(IBM) - Get Report

,

Exxon Mobil

(XOM) - Get Report

,

McDonald's

(MCD) - Get Report

and

Coca-Cola

(KO) - Get Report

.

Since he considers Google a publishing company, and not a tech, he says this portfolio is also diversified.

The third caller had

Johnson & Johnson

(JNJ) - Get Report

,

NYSE Euronext

(NYX)

,

Yahoo!

(YHOO)

,

Textron

(TXT) - Get Report

and

Las Vegas Sands

(LVS) - Get Report

as their top stocks.

Though worried about Textron and Las Vegas Sands, he called the portfolio diversified.

The fourth caller's portfolio included

Alcoa

(AA) - Get Report

,

Research In Motion

(RIMM)

,

General Motors

(GM) - Get Report

,

Duke Energy

(DUK) - Get Report

and

Microsoft

(MSFT) - Get Report

.

Cramer identified two tech stocks with Microsoft and Research In Motion, but said he's not a fan of any of these companies and would throw the whole deck back and start with five new cards.

Mad Mail

Cramer told a viewer that he sees no signs of stress at

Enterprise Product Partners

(EPD) - Get Report

and he's still a fan of the master limited partnership, along with rival

Kinder Morgan Partners

(KMP)

, which remains his favorite.

Cramer told a second viewer that a recent change of heart on

Procter & Gamble

(PG) - Get Report

came after the company reported its horrible quarter. He said he's still a fan of the company, but not the stock.

Lightning Round

Cramer was bullish on

International Business Machines

(IBM) - Get Report

,

PPL Corp

(PPL) - Get Report

,

Exelon

(EXC) - Get Report

and

Consolidated Edison

(ED) - Get Report

.

He was bearish on

Nucor

(NUE) - Get Report

,

CSX Corp

(CSX) - Get Report

,

Fluor

(FLR) - Get Report

and

Foster Wheeler

(FWLT)

.

Check out the latest edition of

"Cramer's Take onTop-Searched Stocks" on Stockpickr.

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Want more Cramer? Check out Jim's rules and commandments for investing by

clicking here

.

Read more of Cramer's Mad Money Lightning Round insights

.

For "Mad Money" performance statistics and other links, check out Mad Money stats

At the time of publication, Cramer was long Johnson & Johnson, Wells Fargo, ConocoPhillips and Caterpillar.

Jim Cramer, host of the CNBC television program "Mad Money," is a Markets Commentator for TheStreet.com, Inc., and CNBC, and a director and co-founder of TheStreet.com. All opinions expressed by Mr. Cramer on "Mad Money" are his own and do not reflect the opinions of TheStreet.com or its affiliates, or CNBC, NBC UNIVERSAL or their parent company or affiliates. Mr. Cramer's opinions are based upon information he considers to be reliable, but neither TheStreet.com, nor CNBC, nor either of their affiliates and/or subsidiaries warrant its completeness or accuracy, and it should not be relied upon as such. Mr. Cramer's statements are based on his opinions at the time statements are made, and are subject to change without notice. No part of Mr. Cramer's compensation from CNBC or TheStreet.com is related to the specific opinions expressed by him on "Mad Money."

None of the information contained in "Mad Money" constitutes a recommendation by Mr. Cramer, TheStreet.com or CNBC that any particular security, portfolio of securities, transaction, or investment strategy is suitable for any specific person. You must make your own independent decisions regarding any security, portfolio of securities, transaction, or investment strategy mentioned on the program. Mr. Cramer's past results are not necessarily indicative of future performance. Neither Mr. Cramer, nor TheStreet.com, nor CNBC guarantees any specific outcome or profit, and you should be aware of the real risk of loss in following any strategy or investments discussed on the program. The strategy or investments discussed may fluctuate in price or value and you may get back less than you invested. Before acting on any information contained in the program, you should consider whether it is suitable for your particular circumstances and strongly consider seeking advice from your own financial or investment adviser.

Some of the stocks mentioned by Mr. Cramer on "Mad Money" are held in Mr. Cramer's Action Alerts PLUS Portfolio. When that is the case, appropriate disclosure is made on the program and in the "Mad Money" recap available on TheStreet.com. The Action Alerts PLUS Portfolio contains all of Mr. Cramer's personal investments in publicly-traded equity securities only, and does not include any mutual fund holdings or other institutionally managed assets, private equity investments, or his holdings in TheStreet.com, Inc. Since March 2005, the Action Alerts PLUS Portfolio has been held by a Trust, the realized profits from which have been pledged to charity. Mr. Cramer retains full investment discretion with respect to all securities contained in the Trust. Mr. Cramer is subject to certain trading restrictions, and must hold all securities in the Action Alerts PLUS Portfolio for at least one month, and is not permitted to buy or sell any security he has spoken about on television or on his radio program for five days following the broadcast.