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"There is no single piece of data that determines which way the economy is headed," Jim Cramer told the viewers of his "Mad Money" TV show Monday.
He said investors are making a big mistake if they allowed today's unemployment news to outweigh all of the other signs of a global recovery.
Is 9.5% unemployment bad for the economy? Cramer said of course it is, but it doesn't take away from
booming iPhone sales, or the Chinese demand for copper and steel. Unemployment also doesn't undo the effects of record housing affordability, nor $2.30 a gallon gasoline on the heels of $4 gasoline last year, he said.
Cramer said when he looks at the big picture, he sees a slow recovery coming, one that won't produce a lot of jobs or spending, but one that will produce a lot of profits from huge layoffs and falling commodity prices. This is good news for defensive names and high yielders like
, both of which he owns for his
Action Alerts PLUS portfolio, he said.
Cramer also said that select companies will flourish, companies like
, but not
( UAUA), parent of United Airlines.
Cramer said he does not see the market roaring to Dow 10,000, nor falling to Dow 6,300, rather slowing climbing to perhaps Dow 7,000 or even 8,000 if we're lucky. He stood behind stocks like
Nordic American Tanker
, but said a diversified portfolio would be needed to profit from the meandering recovery.
Wanted: IRA Government Bond
In a new segment called the "Eureka Moment," Cramer tackled the question: "Where do I invest my retirement savings?" He said that with so many lackluster options out there for investors, the answer is something completely new.
Cramer said those investing for retirement have a problem, if their only options are CDs and bonds that offer safety but no return, or stocks, which may offer a decent return, but are too risky for many people to handle right now.
The answer, he said, lies in the creation of a new 30-year, 5% government bond that's offered exclusively for IRAs and 401Ks.
Cramer said by offering investors a safe alternative that will allow them to double their money in just over 14 years, the government would be able to restore investor confidence while being able to fund problems for job creation. He pleaded to Congress, and to Treasury Secretary Tim Geithner, to consider creating such a bond to help spark savings and investment in our country.
Health Care That Works
Cramer welcomed David Snow, president, chairman and CEO of
, to discuss the state of health care amidst talks of sweeping healthcare reforms.
Snow reiterated his belief that the debate in Washington should not be on who pays the bills for health care, but rather why the bills are so high in the first place. He said that 96% of all prescriptions in the U.S. are for chronic and complex diseases, the kinds that Medco manages better than anyone else around.
Snow also said that obesity and diabetes is an epidemic here in the U.S. and that with 50% of patients not following their doctors' instructions, the problem is turning a manageable disease into a very ugly situation.
Snow and Cramer also discussed how Medco is not often recognized for its innovations in personalized health solutions, or how the company has won over $16 billion worth of new business based on those innovations. Snow said he's shocked how that company's multiple is so low given its 15% to 20% growth rate.
Cramer reiterated his buy on MedcoHealth.
In this segment, Cramer told a viewer that he would not be a buyer of
for a retirement account. He said stable, high dividend paying stocks are the way to go.
Cramer was bullish on
Old National Bancorp
Cramer was bearish on
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At the time of publication, Cramer was long General Mills, Yum! Brands.
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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