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People feel bad enough about stocks that they're safe to buy, Jim Cramer told viewers on
"Mad Money" program Friday night.
"Things have to get really bad, people have to be psychotically negative, before things can start to get good," Cramer said. He suggested "quality" stocks like
Procter & Gamble
( MOT) and
to play the coming bounce.
Put shares of infrastructure company
( PEC) "in the steal category," Cramer said.
Indications market sentiment has bottomed include a 45% bull reading in a recent investor sentiment poll and a report showing retail traders have roughly four times as many short sales on as professional specialists.
"There aren't a lot of bulls left to convert into bears," Cramer said. "There are more bears than the market can handle. You have to shoot them when that happens."
Enough has gone wrong in the market recently that anyone thinking of bailing probably has. A major financial institution,
( RFX), is in trouble. Housing prices have come down. Inflation is heading up. Cramer said Friday's consumer price index gain of 1.2% "is the high reading for the cycle."
Cramer said the current market isn't one of his "exquisite moment" opportunities where investors should expect huge upsid.
"I'm not saying it's going to go up a thousand points," he said. "But you gotta buy."
Even oil stocks, which "every joker and his brother own," could get caught up in the coming gains, Cramer said.
"I think the stocks lag, but because I believe in a larger bull market thesis, we buy into the lift this time."
As part of this week's international focus, Cramer highlighted some plays from Africa, an area of the world he said is now "investable" after years of upheaval. "It's not things fall apart, it's not Conrad's
Heart of Darkness
.' It's a smart place to put your money."
Cramer's picks were fuel company
, gold company
, payment systems provider
Sasol could post record earnings next year as energy demand grows on the continent, Cramer said. Harmony is coming out of a rough restructuring and has pulled back about 10%. Net1 has at least five potential contracts lined up and could be "huge," he argued. And Naspers, which owns newspapers, "benefits a lot from the fact that there isn't a lot of broadband access in Africa."
American Eagle Outfitters
Natural Gas Services
At the time of publication, Cramer was long Motorola, Qualcomm, Microsoft, Procter & Gamble and Occidental Petroleum.
James J. Cramer is a director and co-founder of TheStreet.com. He contributes daily market commentary for TheStreet.com's sites and serves as an adviser to the company's CEO. Outside contributing columnists for TheStreet.com and RealMoney.com, including Cramer, may, from time to time, write about stocks in which they have a position. In such cases, appropriate disclosure is made. To see his personal portfolio and find out what trades Cramer will make before he makes them, sign up for
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