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NEW YORK (
) -- "Pessimism at the government level beats good news at the corporate level ... at least for now," Jim Cramer told the viewers of his "Mad Money" TV show Wednesday. Cramer likened our recent market action to a chess game, where piece by piece, corporate news is getting overtaken by global issues.
Cramer said, based on all of the positive news spewing from companies, the markets should be higher, a lot higher, but with so many concerns about the global economy, good news doesn't seem to matter. He provided 10 examples to prove his point.
. Cramer said Deere gave a huge guidance boost today, but fears over its international business kept its share price down.
. Cramer said H-P delivered a great number, but with business in Europe up in the air, its shares were also muted.
. This company also provided strong growth, but Cramer noted that hedge funds sell commodities when the dollar is strong, so no-go there as well.
. Cramer said this
Action Alerts PLUS name is poised to deliver monster earnings as well, but worries over financial regulations won't let its shares gain any momentum.
( STD). This bank is in talks to buy
, but since Santander is based in Spain, its stock is plummeting, possibly killing the deal.
Cramer's list continued with
, another Action Alerts Plus stock,
and the oil drillers... all of which have great stories to tell, but have been trumped by the bad news of the day.
"So what do we do," asked Cramer? "We wait." Cramer told investors to stay in touch with the fundamentals and wait for these governmental fears to pass. When they do, he said, all of this positive news will matter once again.
Securities and Exchange 'Omission'
Continuing his series to educate investors, Cramer warned that stocks are not cash, and shouldn't be treated as cash. Stocks, he said, can go down for many reasons, some of which have nothing to do with the company itself.
Stock Picks 5 Stocks to Avoid Euro Crisis
Cramer explained that in the old world, corporate earnings were everything. Stocks that had good earnings went up, and those that didn't went down. But today's market has turned that notion on its ear, said Cramer, and outside factors can now determine which way a stock moves.
Cramer said that with the repeal of the uptick rule by the Bush administration, short sellers have gained far too much power. Short sellers, he said, create fear and panic, and were partially to blame for the fall of Lehman Brothers and are a real threat in Germany currently.
Also a threat to the markets are double and triple short ETFs, said Cramer, which are nothing more than instruments for traders to beat down stocks needlessly. These ETFs can quickly overwhelm a stock, he said, which begs the question, "how can this be allowed to happen?"
Cramer said it's clear from last week's 1,000-point decline in the
, that the
Securities and Exchange Commission
is on the side of Wall Street, and not the average American. He called the SEC's proposed fixes for the problem are "profoundly misguided," noting that the proposed circuit breakers exclude ETFs, the exact people that need to be stopped.
"Who represents the people at the SEC," asked Cramer? Who protects the IRAs and the 401(k)s? Cramer said the SEC's actions simply make no sense. He said the agency is not equipped to protect the average investor from con men like Bernie Madoff, and their policies do nothing as well.
Growth and Safety: Health Care REIT
"In this market, we want safety," Cramer told viewers, as he once again recommended an accidentally high-yielding stock that offers both growth and safety for investors.
Health Care REIT
, a real estate investment trust that operates in 39 states and offers a juicy 6.6% yield.
Cramer said as America continues to age, the demand for health care will only continue to rise, translating into an increased need for medical properties, the exact kind that Health Care REIT offers. He said that unlike other REITs, which only own the mortgages to their properties, Health Care REIT actually owns their facilities, with only 7% of properties being currently mortgaged.
Cramer called Health Care REIT a best of breed player because of its diversification both by property type and geography. In addition to being in 39 states, the company is also split between skilled nursing facilities, senior living facilities, hospitals and medical office buildings.
Health Care REIT delivered an earnings beat of 2 cents a share on May 3, with revenues up 10%. Cramer said the company has a solid balance sheet and the possibility of raising its already high dividend. He advised buying a little now, and even more if the stock continues to fall.
Am I Diversified
Cramer played "Am I Diversified" with callers to see if their portfolios have what it takes. The first caller's portfolio included
Cramer identified two of a kind with Anadarko and Schlumberger. He recommended selling one and picking up a health care stock in its place.
The second caller's top holdings included
Cramer said that both Sprint and Windstream are both telcos, and this portfolio needed an industrial company like
The third caller had
Johnson & Johnson
as their top five stocks.
Cramer said this portfolio has two tech companies, and one needs to go.
The fourth caller's top stocks were
Cramer said this portfolio had perfect diversification.
In the Lightning Round, Cramer was bullish on
Bank of Montreal
Cramer was bearish on
Universal Display Corp
-- Written by Scott Rutt in Washington D.C.
To watch replays of Cramer's video segments, visit the Mad Moneypage on CNBC
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At the time of publication, Cramer was long JPMorgan Chase and Home Depot.
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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