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) -- The world's economies won't wreak havoc on your portfolio if you have the right stocks, Jim Cramer told his

"Mad Money"

TV show viewers Wednesday as he sounded off against the so-called "top-down" approach to investing.

Cramer said that according to the macro-economic thinkers, all stocks are tied to their respective economies. So if the economies are accelerating, stocks will, too. But if they're decelerating, stocks will also follow suit.

There's just one problem, however -- things just don't work that way.

Cramer called the top-down approach "lazy thinking" because, in reality, the correlation just isn't there, especially if investors are picking the right stocks. He said with the interest rates in U.S. Treasuries expected to remain near zero for at least the next two or three years, stocks with dividends north of 3%, 4% and even 5% are the only place to be. Plus, with only 10% of mutual funds currently beating the

S&P 500

, investors will see a voracious appetite for stocks as money managers race to catch up.

Cramer once again railed against the notion that individual investors are better off simply investing in index funds rather than picking their own stocks. He said if investors do their homework, they can choose a small portfolio of stocks that will easily beat the averages and most mutual funds as well.

To illustrate his point, Cramer went through a list of his top holdings for charitable trust,

Action Alerts PLUS.

He said that

CVS Caremark

(CVS) - Get Report

remains his top holding as the company continues to pick up business from

Express Scripts


. His second-largest holding,


(AAPL) - Get Report

, has the ability to grow in spite of economic weakness.

Also making the list is

J.P. Morgan Chase

(JPM) - Get Report

, a bank that's making money on mortgages here in the U.S. while its losses in Europe continue to wane.


(BA) - Get Report

is another holding as the seven-year aerospace cycle is just now gaining steam. Finally,


(SLB) - Get Report

is a play on the rising price of oil.

Cramer said these are just a few stocks that can transcend the macro economies and reward shareholders for years to come.

Executive Decision

In the "Executive Decision" segment, Cramer spoke with Paul Palmieri, co-founder, president and CEO of

Millennial Media


, an advertising company at the forefront of the Internet's migration to mobile devices.

Palmieri said consumers' transition from desktop to mobile is not necessarily a problem for companies like Millennial that are uniquely mobile. He said that, overall, click-thru rates on mobile ads are higher than their desktop counterparts and advertisers are willing to pay more for them.

Among the differences between desktop and mobile, however, are that on mobile users are likely to begin a transaction from within an app, rather than via a search box. Thus companies like


(YELP) - Get Report

are able to deliver very precise ads within their own vertical. Since mobile only serves one ad per page, compared to 15 or 16 on a desktop browser, those mobile ads are far more effective.

When asked about Apple's new iPhone, Palmieri said he's excited for a few reasons. First, he said the larger screen means ads can get taller and will be easier to read and click on. Second, 4G speeds mean richer ads with more animations and video. Finally, Apple's Passbook app allows advertisers to "close the loop" and see exactly how many sales are coming from their mobile ad efforts.

Cramer said Millennial remains at the forefront of a great business and he continues to like the stock.

Looking for a Cure

Investors need companies in their portfolios that can transcend politics, Cramer told viewers, and that means companies like those trying to develop treatments for Hepatitis C, the leading cause of liver disease in the U.S. and one that affects over 170 million people worldwide. Cramer said that Hep-C is a $20 billion market opportunity, which is why there are many biotech companies chasing it.

But a lot has happened in the Hep-C race over the past few months, so Cramer laid out the latest news. He said that

Bristol-Myers Squibb

(BMY) - Get Report

, an Action Alerts PLUS holding, was clearly the leader in the space. But after a patient in its clinical trials had a heart attack, its program was halted and later discontinued. Cramer said Bristol-Myers remains a great growth stock with a terrific yield, but it's no longer a player when it comes to Hep-C.

Other players like

Abbott Labs

(ABT) - Get Report



(MRK) - Get Report


Johnson & Johnson

(JNJ) - Get Report

are also in the Hep-C race, but those companies are too huge for a single new drug to move the needle.

Another player is

Vertex Pharmaceuticals

(VRTX) - Get Report

, but that company's drug is too early in development to be a major player at the moment.

That leaves

Gilead Sciences

(GILD) - Get Report

, said Cramer, a company that's trading at just 13.5 times earnings with a 16% growth rate. Gilead's drug, currently known as the catchy GS-7977, is in the same family as Bristol-Myers' drug, only without the side effects. The treatment is a 12-week oral regiment, compared to a 24-week injection routine, and the cure rates are, so far, markedly higher.

Cramer said Gilead is a lot more than just GS-7977. however. The company also leads the way in HIV treatments and has a host of other promising drugs in the pipeline.

Lightning Round

Here's what Cramer had to say about callers' stocks during the "Lightning Round":

Cabot Oil & Gas

(COG) - Get Report

: "I'd rather wait for a pullback. I say hold off and wait."

Advanced Micro Devices

(AMD) - Get Report

: "Why? I have nothing to say about those guys. I don't want to touch it."

International Business Machines

(IBM) - Get Report

: "I say take some profits in IBM and let the rest run."

Frontier Communications

(FTR) - Get Report

: "The business fell off. They were too confident in their business and I don't like the stock because of that."

Main Street Capital

(MAIN) - Get Report

: "This one is on fire. I think the stock is a good one."

Ecopetrol SA

(EC) - Get Report

: "That's a pretty good, well-run company. I think it's better than

Total SA

(TOT) - Get Report


Am I Diversified?

In the "Am I Diversified" segment, Cramer spoke with callers and responded to tweets sent via Twitter to


to see if investors' portfolios have what it takes for today's markets.

The first portfolio included:


(KO) - Get Report



(MCD) - Get Report


(AMZN) - Get Report



(AAPL) - Get Report


Kraft Foods

( KFT).

Cramer said this portfolio was properly diversified.

The second portfolio's top holdings included:





(MCD) - Get Report


MGIC Investment

(MTG) - Get Report


Joy Global




(EXC) - Get Report


Cramer said he was also bullish on this portfolio's diversification.

The third portfolio had:

Public Storage

(PSA) - Get Report






(WMT) - Get Report



(VZ) - Get Report


Bank of America

(BAC) - Get Report

as its top five stocks.

Cramer said "bingo," as this portfolio was also diversified.

No Huddle Offense

In his "No Huddle Offense" segment, Cramer once again pleaded the case for energy self-sufficiency in North America. He said if Washington would only mention that it supports the use of natural gas as a surface fuel and perhaps prompt the U.S. Postal Service to begin using natural gas for its fleet, that would be all it takes for the dream to become a reality.

How can companies like

Chesapeake Energy

(CHK) - Get Report

announce Wednesday that it's selling $6.9 billion worth of assets and still increase its production? Because there's simply so much oil and gas right here in America.

With violence once again erupting in the Middle East, it's imperative the U.S. get serious about energy independence, said Cramer, and natural gas would make that happen -- not to mention that it's cleaner and cheaper than diesel fuel.

Stop Trading Apple

In his closing comment, Cramer once again told investors to stop trying to trade Apple and simply invest in it for the long term.

--Written by Scott Rutt in Washington, D.C.

To email Scott about this article, click here:

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To watch replays of Cramer's video segments, visit the Mad Money page on CNBC


At the time of publication, Cramer's Action Alerts PLUS had a position in AAPL, BA, BMY, CVS, IBM, JPM, MCD and SLB.

Jim Cramer, host of the CNBC television program "Mad Money," is a Markets Commentator for, Inc., and CNBC, and a director and co-founder of All opinions expressed by Mr. Cramer on "Mad Money" are his own and do not reflect the opinions of 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, 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 is related to the specific opinions expressed by him on "Mad Money."

None of the information contained in "Mad Money" constitutes a recommendation by Mr. Cramer, or CNBC that any particular security, portfolio of securities, transaction, or investment strategy is suitable for any specific person. You must make your own independent decisions regarding any security, portfolio of securities, transaction, or investment strategy mentioned on the program. Mr. Cramer's past results are not necessarily indicative of future performance. Neither Mr. Cramer, nor, nor CNBC guarantees any specific outcome or profit, and you should be aware of the real risk of loss in following any strategy or investments discussed on the program. The strategy or investments discussed may fluctuate in price or value and you may get back less than you invested. Before acting on any information contained in the program, you should consider whether it is suitable for your particular circumstances and strongly consider seeking advice from your own financial or investment adviser.

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 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, 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.