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Although some market-players won't like stocks as much as they did before the election -- as Democrats have historically sided with consumers and not investors -- they should stay invested, Jim Cramer told viewers of his "Mad Money" TV show Wednesday.
People may be wondering why the market rallied today even though the Democrats have taken over. But the rally is in accordance with Cramer's Big Bad Event theory, which states that once the event passes, the market tends to relax and go on its way.
Even though things are not as "rosy" as they were before, the Democrats don't have the power to do anything except make corporations feel bad, Cramer said. As Cramer does not believe that will affect the market, he urged people to stay in the game.
Drug, oil and defense stocks tend to be the target, which means investors will need to keep their eyes on Washington to make money in the market now. But there's still a way to "traverse" the markets and do this, Cramer said.
Cramer believes Democrats won't hurt credit card companies, and
will still go higher. In addition,
is "very cheap," he said.
Also, "the Democrats love
, so this stock is going to take its anointed status," Cramer said.
People shouldn't "freak out and stay out," he continued. Otherwise, they will miss out on making money in stocks like
, which should go to $100 by Christmas, and
, he said. Apple closed at $82.45 on Wednesday.
Mel and Howard
"On Wall Street, nothing makes players happier than growth" and one stock that has growth is
Sirius Satellite Radio
, Cramer told his viewers.
Cramer welcomed Sirius CEO Mel Karmazin to the set and asked him how he brought his acquisition cost down 23%.
"It's what we said would happen," Karmazin said. "As we get more and more volume out there and subsidies go down, we're very much on track to get it down."
When Cramer asked if bringing in Howard Stern worked, Karmazin said, "We had 600,000 subscribers on the day he was announced and now we have 5.1 million."
If you listen to Stern, he says it's because of him, and Karmazin said he's not going to disagree with Stern.
"All we needed was a million incremental subscribers to make Howard pay for himself and he did," Karmazin continued.
In response to Cramer's next question, Karmazin said getting Nascar "is a very big deal."
"The deal starts in January and will last for five years," he said. "We think it is a big driver, and coming off the holiday season, it will be a big catalyst for the company."
"At this point, it is quiet at retail," Karmazin said. "The holiday season is going to be a gangbusters quarter." Karmazin said he doesn't have any reason to believe the holiday season will not be big for Sirius. But "we have a lot of work to do from this point to the end of the year to hit our number," he said.
"We started four years ago, and in that short period of time, we will have grown to be the third-largest satellite radio company," he said.
Whereas, if people take a look at
, it has been around for 40 years, Karmazin said.
When asked about the possibility of a deal with
XM Satellite Radio
, Karmazin said that while he believes "there is value creation by putting two companies together," Sirius doesn't need to merge with XM Radio at this point.
"I'm interested in building a long-term value for our company and am open to anything that's in our shareholders' best interest," he said. "We don't need to do a deal, and don't know if we ever will do a deal."
To view Cramer's interview with Mel Karmazin, please click here.
Am I Diversified?
In the "Am I Diversified" segment of the show, Cramer's first caller held the following five stocks in his portfolio:
Because the caller had too many retailers, Cramer said he could not bless the portfolio as diversified. He said he would keep Starbucks and Microsoft and replace the others with a bank, a defense company and maybe a health care stock.
Cramer's second caller owned the following five stocks:
Cramer said the portfolio was not only diversified, but the caller also was in the House of Pleasure.
The third caller named the following five stocks:
Trico Marine Services
Cramer congratulated the caller for owning Cisco, but suggested he throw out Alcatel and pick up a health care stock instead.
Cramer was bullish on
and Lundin Mining.
Cramer was bearish on
For more of Cramer's insights during the Lightning Round, click here
In his "Mad Mail" segment, Cramer told a viewer he has always liked
Responding to another mailer, he said the homebuilders have bottomed, and if these companies report good numbers, they should go up.
Want more Cramer? Check out Jim's rules and commandments for investing from his latest book by
At the time of publication, Cramer was long Sears Holdings.
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."
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