"There is nothing so compelling in this market that it must be bought," Jim Cramer told the viewers of his "Mad Money" TV show Tuesday.
"I'm not saying buy, buy, buy, I'm saying wait, wait, wait," he asserted.
Cramer said that he'd love to hear just one money manager or talking head on TV say that now is not a good time to buy. Instead, he said, the airwaves are filled with positive takes and predictions on the market. "This is not a once-in-a-lifetime buying opportunity," he told viewers, "this is a range-bound market."
While all of the "pros" are predicting 2009 to be a banner year for the markets, Cramer took a more pragmatic view. Investors, he said, are not dumb. They've lost money in record amounts and are smart to leave the markets in favor of government bonds.
"It's not reckless to sell when you can't afford the risk," he said. But he said don't expect them to come roaring back because of those losses.
Cramer said that while stocks like
may appear to have bottomed, they likely haven't.
, said Cramer, a stock which was praised last week for "hanging in there" after the company announced it's pulling out of the MacWorld Expo, only to get pulverized this week. "Every rally is met with a cascade of selling," Cramer said.
In order for the markets to rally, Cramer said they need the financials to rally, something he's just not seen yet. Until he does, he's adopting a wait-and-see approach.
Cramer: Goldman's Insulation Blanket
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Warm Up With Suburban
Cramer said investors looking for a play on the cold winter weather should look no further than
. This master limited partnership currently boasts a juicy 10.7% dividend yield and offers investors some stability to boot.
Cramer said the story at Suburban is a simple one: margins. While the price of natural gas has plummeted in recent months, it's not falling evenly. The result has been a 45% reduction in the wholesale price of gas, but only a 12% reduction in the retail price. That leaves a 33% increase in margins for Suburban.
Cramer said Suburban also offer stability, since the company is 90% owned by retail investors and not large hedge funds looking for quick cash. Suburban also focused mainly on heating and cooking products, which are far more stable than the oil and gas markets in general.
Finally, Cramer said Suburban's dividend is safe, with the company recently boosting its dividend for its 10th consecutive quarter. The company also has a great balance sheet, with $4 a share in cash and a large untapped credit facility at its disposal.
Outrage of the Day
In his "Outrage of the Day" segment, Cramer sounded off at recent
Wall Street Journal
story which dubbed the private equity firm Cerberus as a hero for turning around
If Cerberus were a hero, said Cramer, it would have put up its own money to bail out Chrysler and not look to the government for a handout.
Cerberus, he said, has more money than just about any private equity firm out there, and if this was any company other than an auto, they'd have to use their own money.
Cramer advocated helping the shareholders of
. He said if Cerberus loses its $7.4 billion investment in Chrysler, that's a risk it should've been prepared to take.
Cramer told a viewer that he recommends companies like
, which he also owns for his
Action Alerts PLUS portfolio, or
for his young daughter's first portfolio.
He told a second viewer that he's still a fan of
for the company's continued growth in China.
How Dividends Work
As a fan of high-yielding dividend stocks, Cramer took a moment to explain to viewer exactly how dividends work and what investors need to know about it.
Cramer said the two terms most often associated with dividends are the "ex-dividend date," the first day a stock trades without the right to a quarterly dividend, and the "record date," the date the dividend payment is actually made.
But Cramer said the most important date to remember is what he termed the "must-have" date. That date, said Cramer, is simply the one before the ex-dividend date, the date you must own a stock in order to qualify for the dividend.
as an example, Cramer said the company will pay its next dividend on Jan 15. The ex-dividend date, is Dec 29, but the "must-have" date is Friday, Dec 26, the day after Christmas.
"This is the date you need to own US Bancorp in order to get the dividend on January 15," he said. On Dec 29, shares of USB will likely trade down 42 cents since those shareholders will no longer qualify for the dividend.
Cramer was bullish on
Philip Morris International
He was bearish on
National Oilwell Varco
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At the time of publication, Cramer was long McDonald's.
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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