Cramer's 'Mad Money' Recap: Reduce Your Exposure to China and Washington (Final)

Cramer says investors should steer clear of companies that are getting hurt by the Obama administration and the slowdown in China.
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NEW YORK (

TheStreet

) -- It's time to "sell, sell, sell" the cyclical stocks, Jim Cramer told the viewers of his "Mad Money" TV show Wednesday.

With both a slowdown in China and the "Obama factor" weighing in on the group, Cramer said these once high-flying stocks will be forced to give back some of their recent gains.

Once a haven for investors trying to flee the ailing U.S. economy, cyclical stocks like

U.S. Steel

(X) - Get Report

,

Caterpillar

(CAT) - Get Report

,

Temple-Inland

(TIN)

and

Freeport-McMoRan

(FCX) - Get Report

got the rug pulled out from under them, he said, when Chinese officials poured cold water on the red hot economy last week.

Cramer said not all cyclical stocks should be treated equally however. For his charitable trust,

Action Alerts PLUS, Cramer sold shares of

Vale

(VALE) - Get Report

because the company had too much exposure to China. On the other hand, Cramer kept shares of

Cooper Industries

(CBE)

because that company has little exposure.

Cramer said he's not worried about

Boeing

(BA) - Get Report

or

Ford

(F) - Get Report

, as those companies are global powerhouses, but he would be a seller of

Peabody Energy

(BTU) - Get Report

and he's worried about Freeport-McMoRan.

A better play would be to swap into the consumer staple stocks, said Cramer, companies like

Kimberly Clark

(KMB) - Get Report

,

Clorox

(CLX) - Get Report

,

McDonald's

(MCD) - Get Report

or

ConAgra

(CAG) - Get Report

.

Riding the Mobile Internet Tsunami

In the "Executive Decision" segment, Cramer sat down with David Aldrich, president and CEO of

Skyworks Solutions

(SWKS) - Get Report

, a company at the heart of Cramer's Mobile Internet Tsunami thesis and a stock that's up 208% since Cramer first recommended it on Dec. 12, 2008.

Aldrich described the move towards a mobile Internet as still being in the early stages, with growth coming from not only smart phones, but all sorts of new mobile devices. He said that Skyworks has the advantage when it comes to size, performance and cost, and that's helping the company achieve better margins.

Skyworks is also a big player in the move towards a smart energy grid. Aldrich said his company is making products for smart readers, smart meters and consumer products that help display the smart energy data. He said with $3.5 billion in Federal stimulus still to come, this market too is in its infancy.

Aldrich also explained that Skyworks has gained experience in taking core technologies and applying them to other industries, whether it be satellites or medical devices. He said Skyworks is now partnered with multiple OEMs, eliminating the dependence on a handful of big customers.

Cramer said Skyworks is a stock that's not done, and is heading higher.

Job Creation

Cramer once again spoke with Dan DiMicco, chairman, president and CEO of

Nucor

(NUE) - Get Report

, for the latest read on the economy and the health of the steel industry.

DiMicco led off by saying that the political focus in Washington is now rapidly moving towards recovery and job creation, where it should have been for the last 18 months. He said the American people are speaking loud and clear that jobs are the main issue for the country.

DiMicco clarified by saying that he's not a proponent of the government creating jobs, but rather of the government giving companies the freedom to create jobs themselves, by providing a level playing field internationally, lowering taxes and working towards energy independence. He said the government needs to focus on the primary crises, then step out of the way.

When asked further about our nation's energy policy, DiMicco said the U.S. imports far too much of its energy. He said the country needs to be using its own resources, such as natural gas, nuclear and other forms. He said domestic energy puts Americans to work and helps with the country's national security.

Amidst all of the political issues, DiMicco made it abundantly clear that he's still bullish on Nucor, a viewpoint Cramer also shared. Cramer said Nucor is headed toward $60 a share and offers a great dividend while you're waiting for the stock to move.

Country Needs Natural Gas

Continuing his crusade for natural gas as a bridge fuel towards the future, Cramer spoke with Michael Brune, incoming executive director for the Sierra Club, an organization working hard to better the environment.

Brune sided with Cramer, calling efforts to develop clean coal technologies a distraction and a waste of resources. He said the country needs natural gas as a bridge fuel, and while natural gas is not perfect nor permanent, coal is definitely not the answer nor the future.

Brune advocated replacing the dirtiest of coal fired power plants with natural gas, which is not only more energy efficient but also much better for the environment. He said the technology is available today, and unlike clean coal, it's cost effective.

Cramer commended the Sierra Club for its efforts in stopping the commissioning of any new coal-fired power plants in 2009 as the country draws closer to adopting natural gas as its future.

Lightning Round

Cramer was bullish on

Chesapeake Energy

(CHK) - Get Report

,

Netflix

(NFLX) - Get Report

and

Brown Shoe

(BWS)

.

He was bearish on

Johnson & Johnson

(JNJ) - Get Report

and

Mittal Steel

(MT) - Get Report

.

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

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

.

Want more Cramer? Check out Jim's rules and commandments forinvesting from his latest book by

clicking here.

For more of Cramer's insights during the Lightning Round, clickhere

.

At the time of publication, Cramer was long Cooper Industries.

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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