Skip to main content

Search Jim Cramer's Mad Money trading recommendations using our exclusive Mad Money Stock Screener and watch Jim Cramer's Mad Money Post Game video exclusively on TheStreet.com.

NEW YORK (

TheStreet

) -- "Ben Bernanke just shot the biggest competition for stocks,"

Jim Cramer

told his

"Mad Money"

TV show viewers on Tuesday.

He said the comments from the

Federal Reserve

have effectively eliminated Treasury bonds from the investing equation, making high-yield, high-growth stocks the only game in town.

Cramer explained that Bernanke's decision to keep interest rates super-low until mid-2013 virtually wipes out of all the gains from bonds and bank CDs for the foreseeable future. That makes stocks like

Apple

(AAPL) - Get Apple Inc. Report

, a stock which Cramer owns for his charitable trust,

Action Alerts PLUS, all the more valuable, as Apple's current price is extremely low when compared to the growth the stock will be delivering in the future.

TheStreet Recommends

On the downside, Cramer said that Bernanke's comments certainly don't fix the morass in Europe, where the "clueless buffoons" don't seem to have a clue on how to fix their countries' problems. Bernanke's comments also don't do much to fix the U.S. government debt and budget situation, he said, although it does give the Treasury more of an opportunity to refinance our country's debt at lower rates.

Cramer said for those who can't handle the pain of a volatile market that can rise and fall hundreds of points in just minutes, now would be a great exit point. But, he cautioned, remember that the alternatives to stocks will be paying next to nothing until mid-2013. Cramer urged investors to stick with high-growth stocks like Apple and those with high dividend yields.

Lesson from Crash of 1987

In the "Off The Charts" segment, Cramer told viewers to never forget the great market crash of 1987 and the lessons it taught us. He explained that the markets had peaked in August of that year, with the

Dow Jones Industrial Average

hovering around 2700. Stocks back then were trading at 40 times earnings, and the Japanese were buying an awful lot of U.S. stocks, he recalled.

Cramer also recalled that the week before the crash was one of the worst week's in stock market history, one that caused him to liquidate his portfolio. Then on that Monday, the market collapsed, down 508 points, a 20% decline. Monday was followed by "terrible Tuesday," where the market continued to sink a full 1,000 points from its highs just the week before.

But Cramer noted that the 1,000-point decline, peak to trough, was with the Dow at 2,600, not the 11,000 we have today. And more importantly, had you bought stocks the Friday before the crash, you would have been making money just one year later. The crash, he said, made stocks even more worth buying, despite being one of the biggest declines in history.

Dividend-Paying Stocks

What can investors buy right here, right now? Stocks with high dividends. Cramer reminded viewers that nearly 40% of the total return from the

S&P 500

has come from dividends. A stock with a 6% yield, for example, will double your money in 12 years even if the share price goes nowhere, assuming you reinvest your dividends. That's why Cramer outlined his dividend stock shopping list for Wednesday's trading.

1.

ConEd

(ED) - Get Consolidated Edison, Inc. Report

- Cramer said this New York utility yields 4.7% and has consistent earnings.

2.

Enterprise Product Partners

(EPD) - Get Enterprise Products Partners L.P. Report

- This pipeline operator yields 6% and just raised its dividend again a month ago.

3.

Verizon

(VZ) - Get Verizon Communications Inc. Report

- Cramer said Verizon's business won't be derailed by a bad economy and the stock yields 5.8%.

4.

Bristol-Myers Squibb

(BMY) - Get Bristol-Myers Squibb Company Report

- With new drugs in the pipeline, Cramer said Bristol-Myers is turning itself around and has a 4.9% yield.

5.

Darden Restaurants

(DRI) - Get Darden Restaurants, Inc. Report

- Owners of the Red Lobster and Olive Garden chains, Darden will benefit big from falling gas prices, he said. Darden yields 3.7%.

6.

Kimberly-Clark

(KMB) - Get Kimberly-Clark Corporation Report

- Another company benefiting from falling energy prices, Kimberly yields 4.4%.

7.

International Paper

(IP) - Get International Paper Company Report

- Cramer said this company has strong earnings and is a play off emerging markets. The stock has a juicy 4.4% dividend yield.

Future of Natural Gas

In the "Executive Decision" segment, Cramer once again spoke with Andrew Littlefair, president and CEO of

Clean Energy Fuels

(CLNE) - Get Clean Energy Fuels Corp. Report

, a company that disappointed Wall Street with earnings that were a penny a share less than expected.

Littlefair said Clean Energy Fuels is still in growth mode and business is still strong. He said earnings did come in a penny shy, but revenues were up 57% and volumes increased by 26%. The company has 115 fueling stations and is contracted to build 150 more.

Littlefair also noted that the private sector is moving forward with natural gas, despite legislation being stalled in Congress. He said by 2012 the company will have completed 90 new stations including some along the I-95 corridor from Maine to Florida. He said new natural gas engines are coming from engine makers like

Cummins

(CMI) - Get Cummins Inc. Report

and trucking companies and fleets can't wait to get their hands on them.

Cramer said if investors believe, as he does, that natural gas can play an important part in America's energy future, then Clean Energy Fuels remains a great speculative stock.

Lightning Round

Cramer was bullish on

Core Labs

(CLB) - Get Core Laboratories NV Report

,

Mercer Int'l

(MERC) - Get Mercer International Inc. Report

,

Whole Foods Markets

(WFM)

,

Cliffs Natural Resources

(CLF) - Get Cleveland-Cliffs Inc Report

,

Alaska Communications Systems

(ALSK) - Get Alaska Communications Systems Group, Inc. Report

,

Windstream

(WIN) - Get Windstream Holdings, Inc. Report

and

CenturyLink

(CTL) - Get CenturyLink, Inc. Report

.

He was bearish on

Carbo Ceramics

(CRR) - Get CARBO Ceramics Inc. Report

,

Hecla Mining

(HL) - Get Hecla Mining Company Report

and

Winn-Dixie Stores

(WINN)

.

Transports Signal Hope for Recovery

In his "No Huddle Offense" segment, Cramer told investors to watch the transportation stocks as a measure of the world's economic strength. He said the transports measure global demand just as the price of gold measures fear and uncertainty. In 2008, the transports plummeted, signaling the recession ahead. But today, the transports have sold off a lesser amount, giving Cramer more hope for a recovery.

Cramer recommended

Union Pacific

(UNP) - Get Union Pacific Corporation Report

, as the rails have maintained their pricing power, and

UPS

(UPS) - Get United Parcel Service, Inc. Class B Report

, an Action Alerts PLUS name that yields 3.3%.

Cramer said that the tanker stocks, like

Nordic American Tanker

(NAT) - Get Nordic American Tankers Limited Report

, whose CEO appeared on the show yesterday, are a total disaster. He said after further review, he simply cannot support the company borrowing money to pay its dividend.

Cramer also soured on the airline stocks, which he said will get hit hard if there is any economic slowdown.

--Written by Scott Rutt in Washington, D.C.

To contact the writer of this article, click here:

Scott Rutt

.

To follow the writer on Twitter, go to

http://twitter.com/scottrutt

.

To submit a news tip, send an email to:

tips@thestreet.com

.

To watch replays of Cramer's video segments, visit the Mad Money page on CNBC

.

Want more Cramer? Check out Jim's rules and commandments for investing from his latest book by

clicking here

.

For more of Cramer's insights during the Lightning Round, clickhere

.

At the time of publication, Cramer was long Apple, UPS.

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.