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NEW YORK (
) -- Your biggest enemy is not Europe or China or even the Fed, Jim Cramer told his
TV show viewers Monday. The market's biggest enemy right now is your fellow shareholders.
Cramer explained there are countless types of shareholders hitting the sell button right now, not the least of which are those who never wanted to own stocks in the first place and were simply buying them for their high yields as compared to bonds. These shareholders felt good with 4% yields, he said, but now that yields have fallen back to 3%, the protection from big dividends isn't enough to keep them from selling.
Then there are the hedge funds that are being forced to sell thanks to increased redemptions. These fund managers were betting that the worst was over, and their predictions have just been plain wrong, Cramer added.
Other investors were betting on a global recovery, one that relied heavily on China, India, Russia and Brazil. But here too, these early predictions of a turnaround never materialized.
Of course, there are also the
watchers, said Cramer, and those investors feel there's no safe place to hide.
Cramer said investors' only friends at the moment are those who feel the worst is now over and aren't selling because they fear they won't be able to get back in at a better price. Even these investors aren't yet ready to start buying, said Cramer, but at least there is someone waiting in the wings to begin buying just as soon as this latest interest rate scare is behind us.
Invest in America
It may not seem like it, but the U.S. still has the best economy in the world, Cramer told viewers as he kicked off a new "Invest in America" series of recommendations based on companies that are making the grade right here at home. He said no talk about the U.S. economy would be complete without discussing the energy boom, which is why he chose to start with the oil industry.
Energy will be huge in the coming decades, as low-cost energy will be the offset our country needs to counter higher labor costs and tougher environmental standards in the global economy, said Cramer.
That's why Cramer said he's a fan of
, a company that does well as the overall rig count in our country rises, as it is now. Halliburton also has a monster buyback program, he noted. Cramer also gave the nod to
, still one of the best drillers in our nation's oil shale fields. EOG reported a 33% increased in production during its last quarter, a trend that's not likely to end anytime soon.
Once the oil is out of the ground you need to ship it, which it why Cramer said he likes
Kinder Morgan Energy Partners
, our nation's largest pipeline operator, and
, the railroad that's shipping oil all across our country.
No oil field would be complete without
, said Cramer, as that company uses its technology and good, old-fashioned science to find where the oil is in the first place.
Cramer said all of these American companies will be taking advantage of long-term oil trends for many years to come.
Fragile China Trade
Is the China trade over for good? Cramer said that growth in China matters a lot to a whole host of American companies and he's worried about all of them. He said after years of supercharged Chinese growth, the country now appears to be stalled out, which is wreaking havoc on countless stocks.
and engine maker
are just two of the stocks affected by China, said Cramer, as are all of the coal stocks that were counting on increased exports to China. Cramer said he can't trust the earnings from
Retail has also been affected, he said, with
, along with
all counting in Chinese demand.
It goes without saying that commodity stocks including
and autos such as
are also levered to China and now at risk. Cramer noted that
Cliffs Natural Resources
is especially vulnerable.
Other industries from technology to consumer packaged goods to casinos are all beholden to China, said Cramer, which is why he's leery of all of them.
In the Lightning Round, Cramer was bullish on
Royal Dutch Shell
Cramer was bearish on
World Wrestling Entertainment
The commercial printing business may have been upstaged by the Internet and the iPad, but no one told that to
, the printer whose shares have popped 45% so far in 2013 after the company posted a surprise earnings beat of 5 cents a share.
Why has Donnelley been able to rise while its business is in secular decline? Simple, said Cramer: The company is declining a lot slower than people expected. Indeed, the company's earnings have not been as bad as last year, thanks to aggressive cost cutting and expansion into new businesses, such as printing and delivering financial statements as well as producing and distributing eBooks.
Donnelley currently pays a hefty 8% yield thanks to its tremendous cash flow and Cramer said that dividend looks safe for the foreseeable future. All in all, Cramer said, this company is doing just fine.
No Huddle Offense
In his "No Huddle Offense" segment, Cramer said there's never a right time for the Federal Reserve to raise interest rates, but in the case of this go-around, the real damage may be overseas.
Cramer said the foreign markets are the ones really hurting from the Fed's planned exit from buying bonds as countless investors will abandon stocks in favor of bonds as rates hit 3%.
Meanwhile, the rest of the world, from Brazil to Mexico to China, appears to be reeling from the possibility of slower growth. There are still many questions to be answered overseas, said Cramer, and these countries need to be on everyone's radar.
To watch replays of Cramer's video segments, visit the Mad Money page on CNBC
-- Written by Scott Rutt in Washington, D.C.
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At the time of publication, Cramer's Action Alerts PLUS had no position in stocks mentioned.
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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