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NEW YORK (
) -- Jim Cramer asked the viewers of his "Mad Money" TV show Thursday if they've become too skeptical.
He said when it comes to autos, or housing, or the economy, the media and investors alike are not seeing the forest through the trees.
Cramer said that throughout today, and for weeks now, he's been hearing the argument of "pull-through," the notion that tax credits and stimulus plans like Cash For Clunkers are not actually generating sales, but are instead just stealing sales from 2010. He said the markets have become so ingrained in this thinking, it seems impossible to convince them otherwise.
"People have to stop believing everything is bad," said Cramer. He said it's not being skeptical, nor prudent, to not believe anything you hear. He said when it comes to housing, the assumption that people are only buying homes because of an $8,000 tax credit is nonsense. People are buying because prices and mortgage rates are at historic lows, he said.
Likewise with autos, said Cramer. Cash For Clunkers may has sparked sales, but it's entirely possible that those sales came from a different pool of buyers, and not the ones who were going to buy a car next year. Investors are missing the bigger picture, he said. Stimulus and tax credits are only part of the picture.
Cramer said the economy is having "a healthy return to buying," and warned investors not to be blinded by the so-called bad news. "Open your eyes to what's happening," he said, "and you'll like what you see."
Getting a New Image
In the "Executive Decision" segment, Cramer spoke with John Pinkerton, chairman and CEO of
, to find out if Cramer's become too bullish on natural gas.
Pinkerton admitted that the image problem that natural gas faces in Washington is the industry's own fault. He said the natural gas industry has not done a good job of telling their story and explaining the benefits of the fuel. The fact is, he said, that new discoveries of natural gas in shale fields throughout the country give America a 100-year reserve of the low cost, clean burning fuel.
When asked why these huge reserves were not exploited years ago, Pinkerton explained that only recently has the technology evolved to the point where gas from these sources can be extracted methodically and at low costs. He said even with natural gas trading around $5, Range Resources, and others can make a healthily profit, all while delivering America a fuel that's one-third the cost of crude oil.
Pinkerton said at Range Resources, the company has adopted a strategy of selling low returning assets and reinvesting that money into higher returning assets, thus maximizing shareholder value.
Finally, when asked about the economic impact of natural gas, Pinkerton said that a recent study suggested that the Marcellus shale fields in Pennsylvania could employ 110,000 workers at full capacity. "Shale fields are complicated," said Pinkerton, "and it takes a lot of people to get it right."
Cramer continued his push to get natural gas the recognition it deserves. Range Resources will be a monster stock, he said, if this country sees its potential.
In Thursday's "Sell Block" segment, Cramer called the top in U.S. treasury bonds, saying that investors need to sell their 10-year and 30-year treasuries and invest in bank certificates of deposits.
Cramer said the run in U.S. treasuries has ended. As economy growth returns, the
will eventually have to start raising interest rates, sending the yield on the 30-year bond to 5% in the next few months. He said the data confirms the recovery is coming, and there's no way around it.
Cramer went on further to call the 10-year treasury the most overvalued security in the world. He implored investors to begin exiting these securities before they begin falling.
So where should investors reinvest the money? Cramer said to forget about bank money market funds, as they hardly pay any interest and lose their FDIC protection as of Friday. Also off the table should be financial ETFs, which Cramer has been advocating banning outright as they only track daily moves in securities and cost investors big money in the long term.
Cramer said that only leaves one place to invest money that requires safety and security, and that's in bank CDs. He told investors they need to shop around for the best rates, but in the end, CDs will represent the best value and the best safety for the next 18 months until U.S. treasuries bottom out
Cramer told a viewer not to sell
. Cramer still thinks is headed higher.
Cramer told another viewer that
is playing catch up to the rest of the market, and will likely still head higher.
Cramer told a final viewer that he's still in favor of reinstating the uptick rule, which slows down the speed of short sellers when they begin ganging up on a stock. He said he still hopes the
considers bringing back the rule.
In a final thought, Cramer said the mobile Internet tsunami with
, and he'd be a buyer of the company's recently announced secondary offering.
Cramer was bullish on
He was bearish on
Las Vegas Sands
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At the time of publication, Cramer was long BP.
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