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The market was up today, and people believe it's higher for any number of reasons, Jim Cramer told viewers of his "Mad Money" TV show, which was broadcast Wednesday from Boston College as part of his "Back to School" tour.
"But it's really that high because 'Mad Money' has come to Boston College!" Cramer said to the cheers of his live audience of students.
All joking aside, the market believes the Republicans might win the House in the November elections, and that's why it's been moving higher, Cramer said.
To talk more on the topic of politics, Cramer welcomed the host of NBC's "Meet the Press" Tim Russert to the show.
the U.S. Treasury Secretary is doing a great job," Russert said.
Paulson came to Washington with bipartisan support, which is unique. Paulson had people who knew him, and they invested in him, Russert went on to say, adding that the government also believes that Paulson "can speak to the markets."
Right now the Democrats need to win 15 House seats, Russert said. Although they've probably won two or three already, if the elections were held today, it's difficult to say whether they'd win or not, he said.
The Democrats could gain 10 to 20 House seats, Russert continued. "But everything will change if they take over the House."
Drug companies could also see profits go down if the Democrats win, Cramer said.
When Cramer asked about the No.1 political issue that could affect the market, Russert said, "the one real fear that exists in Washington is terrorism."
Not necessarily another September 11, but people in Washington are "stunned that we have not experienced suicide bombers," Russert said.
Welcoming Boston College student and Russert's son, Luke Russert, to the show, Cramer asked him what types of stocks he liked to invest in.
Luke said he was a part of a "blue-chip stock family" that holds on to stocks once purchasing them. Some stocks he said he has held are
When Luke asked Cramer about
Sirius Satellite Radio
, Cramer said it needs to merge with
If that happens, both stocks will go high, and "you can have an overnight hit," Cramer said.
A Word to the Young: Google, Goldman, Sears
"You need to get in the game and get in now, while you are young," Cramer stressed to his college audience. "You are in school and haven't even started making money yet, which means it's OK to lose it because you will spend the rest of your life making it back."
So stop procrastinating, making excuses and messing around on MySpace and Facebook and start thinking about opening a brokerage account and getting into the game, he said.
The first step to making some mad money is opening a brokerage account online, which takes about five minutes. And then all you need to do is one hour of homework per stock a week, he said.
Three stocks that Cramer believes are perfect to start with are
, of which, the latter two he owns for his charitable trust,
Action Alerts PLUS.
Start off buying a few shares of one, and if you have more money, buy more shares, he said.
Although these stocks may look expensive, Cramer said they remind him of
If people had bought one share of Berkshire Hathaway 26 years ago, they would have made 320 times what they invested with, he said.
Similarly, Cramer believes Google is a "fast-growing large-cap stock," which has "only started to scratch the surface of its power."
Right now Google is cheap because
, a stock that Cramer owns for his charitable trust, stumbled yesterday.
Another reason Google is cheap is because people believe it won't keep beating its numbers, but that's wrong, Cramer said.
In addition, although
might be a hideous place to shop and "may well be the single worst department store in America, it is not just Sears, it is Sears
", he said.
belongs much higher, as the company's CEO "is the hungriest chief executive in the country" who is determined to get Goldman's earnings to grow, Cramer said.
Video-Game Stocks Worth Playing
Although Cramer believes movies can't make market players any money, he does believe video games can.
"I'd rather invest in a $20 million video-game sequel than a $20 million movie," he said, adding that while movies compete with home theaters, video-game consoles are a part of home theaters.
Cramer said he would be a buyer of
up to $50, "after which, the upside starts to get limited." The stock closed at $48.37 on Wednesday.
is another new video-game play that is comparatively cheaper than its competitors, and that Cramer likes and believes is a buy.
The company's September sales come out next month, and they should be great, he said, giving THQ a "two-thumbs-up triple buy."
Next, getting in touch with his audience, Cramer answered some more questions.
One student commented on how Cramer talked about video-game sellers and asked why he didn't mention actual console makers, such as
While Sony has a game business, it also has a lot of other businesses, so it is not levered to hardware for video games, Cramer responded. Microsoft, on the other hand, is a great way to play tech, he said.
In flat panels,
is the best buy, Cramer told one student, and NFL football player Donovan McNabb is a triple buy, he told another.
Cramer was bullish on
Sunrise Senior Living
Cramer was bearish on
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At the time of publication, Cramer was Goldman Sachs, Sears Holdings and Yahoo!.
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.