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NEW YORK (
) -- "The markets may be broken, but the underlying companies and our economy aren't ," an upbeat Jim Cramer told the viewers of his "Mad Money" TV show Friday.
He told viewers to remember that the U.S. economy is much stronger than Europe, and it's much stronger than it was in 2008.
Cramer said yesterday's market plunge and today's continued weakness may seem like the end of the world. But, he asked: Isn't it reasonable to think that a market that shot up from
6,500 to Dow 11,000 could retreat back to 10,000 or even 9,000 before continuing it's upward trend?
Cramer said it's ironic to think that the Dow 10,000 level, the one we were so excited about reaching on the upside, is now so scary a level on the downside.
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Cramer reminded viewers that the U.S. economy of today is not that of 2008, when the banks were on the verge of nationalization and housing prices were in free fall. He said that in today's market, U.S. companies are an island of sanity in a world of chaos, even if the markets don't reflect that at the moment.
Cramer said he remains cautious on the markets, and only recommends high yielding dividend stocks which offer safety for investors. He said he'd be a buyer of
Procter & Gamble
, a stock which he owns for his charitable trust,
Action Alerts PLUS, especially when it yields 5%, and just announced a 9.5% dividend hike to boot.
High-Yielding Stock Ideas
Top 10 Dow Dividend Stocks
Cramer said he wouldn't invest in countries or currencies. Instead he'd invest in CEOs, ones with guts and grit and balance sheets flush with cash. "Things are getting better, not worse," he said, and these strong companies will be the first ones to prove it.
Perfect Dividend Portfolio
Continuing on his "accidentally high yielding" stock thesis, Cramer outlined what he called the perfect dividend portfolio for this turbulent market. The portfolio included:
. Cramer said this Action Alerts Plus name yields 6.7% and is one of the most consistent dividend raisers he's ever seen. Over the last 10 years, shares of Altria are up 319%, but with reinvested dividends, that gain is 623%.
. Cramer said this telco juggernaut also yields 6.7%, and delivered a four-cent earnings beat. With 57 million landlines and 87 million wireless subscribers, Cramer said AT&T is a must own. Shares of AT&T are down 41% over the last 10 years, but with its dividends, that loss shrinks to just 6%, better than the S&P.
Kinder Morgan Energy Partners
. This Cramer favorite is another 6.7% yielder, and is one of the premier oil and gas pipeline operators. Over 10 years, Kinder Morgan is up 246%, and with dividends, that gain skyrockets to 578%.
Plum Creek Timber
. This real estate investment trust is the largest land owner in the U.S. and beat analysts estimates by nine cents when it reported last. Plum Creek yields 4.4%, but is up 62% over 10 years, 183% with dividends.
. Last on Cramer's list with a 4.5% yield and an 18 cent a share earnings beat, Cramer said DuPont has been down 16% over 10 years, but with its dividend that loss becomes a gain of 21%.
Cramer also gave on honorable mention to
, with its 5.4% yield and 12 cent a share earnings beat. Cramer said ConEd has given investors a 122% gain when you include its dividend.
Bullish on Gold
In the "Executive Decision" segment, Cramer spoke with Paul Wright, president and CEO of
, one of Cramer's most favorite gold miners.
Wright said that Eldorado's mines have come through for the company in a big way, both increasing production while lowering costs at the same time. He said in retrospect, the company has been too conservative in their estimates of both production and costs.
Wright was also bullish on the outlook for gold prices, saying that he still sees good reasons for gold prices to continue higher. He said the realities are that demand for gold is still growing faster than supply can keep up, and he doesn't see that changing anytime soon.
When asked about the company's seemingly high cash levels, Wright said he feels Eldorado's spending is appropriate for both operating its existing mines and exploring new ones. He said his company has one of the best portfolios of mines out there and spending extra cash would make it better.
Finally, when asked about the company's international aspects, he said that there are risks of countries like Turkey and Australia taxing miners as a means of increasing revenue, but at the moment, he's not overly worried. Turning to China, Wright said that despite a pattern of two steps forward, one step back, the long term progress in China is decidedly forward.
Outrage of the Day
Cramer sounded off against the people he says were responsible for yesterday's trading fiasco. "Where were the grown-ups?"
Cramer laid blame for the first 350 lost Dow points to the European Union central bankers, who essentially disappeared at the moment the markets, those they're supposed to watch over, needed them most.
But Cramer reserved the harshest words for the U.S. exchanges, which saw an unprecedented 998 point slide in the Dow, but did nothing. Cramer said clearly the system was broken and the machines were running amok.
He said the exchanges failed to stop trading, issue a bulletin alerting traders, alert the media that something was wrong or even offer investors a decent explanation.
Cramer said all the exchanges hid their heads in the sand. He said that 24 hours later, no one knows whose trading system was to blame, let alone what happened.
And he said that sadly, nothing will change, as these exchanges don't have a central regulator and are solely focused on increasing trading volume, not protecting the individual investor
Cramer was bullish on
He was bearish on
-- Written by Scott Rutt in Washington D.C.
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At the time of publication, Cramer was long Procter & Gamble, Altria.
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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Some of the stocks mentioned by Mr. Cramer on "Mad Money" are held in Mr. Cramer's Action Alerts PLUS Portfolio. When that is the case, appropriate disclosure is made on the program and in the "Mad Money" recap available on TheStreet.com. The Action Alerts PLUS Portfolio contains all of Mr. Cramer's personal investments in publicly-traded equity securities only, and does not include any mutual fund holdings or other institutionally managed assets, private equity investments, or his holdings in TheStreet.com, Inc. Since March 2005, the Action Alerts PLUS Portfolio has been held by a Trust, the realized profits from which have been pledged to charity. Mr. Cramer retains full investment discretion with respect to all securities contained in the Trust. Mr. Cramer is subject to certain trading restrictions, and must hold all securities in the Action Alerts PLUS Portfolio for at least one month, and is not permitted to buy or sell any security he has spoken about on television or on his radio program for five days following the broadcast.