Cramer's 'Mad Money' Recap: Bernanke's Bull Market (Final)
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 (
) -- "I don't care about how you vote, I care about how you invest," Jim Cramer told the viewers of his
TV show on election Tuesday.
That's because Cramer chose to celebrate the only guy not up for election,
Federal Reserve
chairman Ben Bernanke.
Cramer said while Congress is hard at work fighting against the markets with anti-business initiatives like health care and financial reforms, Ben Bernanke is hard at work propping up the economy, and the stock market, to avoid the same mistakes Japan made in the 1990s.
Cramer explained that in 1989, the Japan's Nikkei was at a record 38,000, only to fall over the next decade to below 10,000, sparking the term "Japan's lost decade". Cramer said Bernanke is working to avoid a decade of stagnation here in the U.S. by using every means necessary.
In reality, Bernanke can't raise home prices, said Cramer, nor can he trigger companies to begin hiring. But he can, however, flood the market with short-term liquidity, making the dollar more competitive, and making stocks more attractive. Cramer said with the markets on a roll, consumers will once again invest, and when they invest well, they spend more.
Cramer said Bernanke can also keep interest rates low, making bank CDs and money markets, along with U.S. Treasuries, unattractive when compared to stocks. "Bernanke is taking a stand," said Cramer, and should be commended for his efforts.
Turning the Corner
In the "Executive Decision" segment, Cramer spoke with David Cote, chairman and CEO of
Honeywell
(HON) - Get Report
, which Cramer characterized as one of America's greatest manufacturers, making everything from aerospace components to climate control systems and specialty materials to auto parts.
Cote said that Honeywell is currently seeing a mixture of markets, with some segments like aerospace trending higher, while defense is trending lower. That said, Cote said Honeywell has still been able to turn the corner, shifting from layoffs and attrition to modest hiring. "It's a lot more fun now than it was a year ago," Cote joked.
Cote also spoke out on another important issue, the country's national debt. He said the country needs to stop arguing and start pulling together on the issue of the national debt. While the U.S. debt stands at $9 trillion today, that number will balloon to $20 trillion by 2020, he said, leaving the country with a $1 trillion interest payment every year. "This is a battle for global competitiveness," Cote said, and it needs to start in Congress, today.
Cramer commended Cote for both his excellent work at Honeywell and also his efforts to address the important issue of our country's out of control spending.
High-Growth Momentum Stocks
Cramer took some time out to update his C.A.N.D.I.E.S. list of high-growth momentum stocks. He said on average, the list which included
Chipotle Mexican Grill
(CMG) - Get Report
,
Apple
(AAPL) - Get Report
,
Netflix
(NFLX) - Get Report
,
Deckers Outdoor
(DECK) - Get Report
,
Intuitive Surgical
(ISRG) - Get Report
,
Express Scripts
(ESRX)
and
Salesforce.com
(CRM) - Get Report
, was up 18%, but two stocks, Intuitive Surgical and Express Scripts, have not been keeping pace and must be changed.
Replacing the laggards, Cramer added
F5 Networks
(FFIV) - Get Report
and
Amazon.com
(AMZN) - Get Report
, changing the acronym to F.A.D.S. C.A.N., as in "yes, fads can make you money."
Cramer said Wall Street regards these companies as fads, as flashes in the pan, but in reality, they're long-term secular trends. Cramer said Chipotle is redefining fast food, while Apple, a stock which he owns for his charitable trust,
Action Alerts PLUS is leading the communications revolution. Likewise, Netflix is leading the online movie market and Salesforce.com is reinventing enterprise software.
Cramer said F5 deserves to be on this list as it delivers a faster Internet, while Amazon is transforming online sales for the world. "Fads can make you money," said Cramer, and this updated portfolio will prove it.
More Stimulus
In an interview, Cramer spoke with Gov. Ed Rendell (D., Pa.) about politics and business in America.
When asked about job creation in the U.S., Rendell said the country needs two things. First, the country needs a serious three- to four-year infrastructure stimulus bill, which will put serious dollars into building and create jobs not only in construction, but also in steel, aggregates, timber and in countless factories.
Second, the country needs to capture the market in renewable energy. He said the country needs a renewable energy bill with permanent tax credits and a serious commitment towards inventing the future.
Turning to natural gas, Rendell said he supports the notion of natural gas as a bridge fuel, helping the country transition from dirty fossil fuels to renewable energy. "Natural gas is not renewable, but it's cleaner," said Rendell, who noted that the Marcellus shale region in Pennsylvania could created 100,000 high-paying jobs if natural gas were a priority for this country.
Finally, turning towards politics, Rendell said that relationship between President Obama and business leaders can be repaired. He said there are just a lot of things that need to be fixed right now.
Lightning Round
Cramer was bullish on
Discover Financial Services
(DFS) - Get Report
.
He was bearish on
American Axle
(AXL) - Get Report
,
Teva Pharmaceutical
(TEVA) - Get Report
and
Green Mountain Coffee Roasters
(GMCR)
.
--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
.
To submit a news tip, send an email to:
.
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
.
For more of Cramer's insights during the Lightning Round, clickhere
.
At the time of publication, Cramer was long Apple.
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.
