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NEW YORK (

TheStreet

) -- "Investing in U.S. Treasuries isn't prudent; it's reckless," Jim Cramer told the viewers of his "Mad Money" TV show Tuesday.

He said that with so many great stocks out there, investors would be far better served staying in equities.

Responding to data that showed an increase in capital heading towards low-yielding bond funds, Cramer said he cringed at the horrible decisions investors are making. He said that bond funds, while safe, offer no upside, and investors who invest in them will never recover the losses incurred during the crash.

Cramer said the U.S. government will be issuing a lot of bonds in the coming years to finance growing deficits. He wondered why anyone would want to invest in a security that is constantly diluting itself.

As an alternative, Cramer suggested stocks with high-dividend yields. He reminded viewers of the power of compounding dividends, and the favorable tax treatment dividends receive. He also noted that stocks that pay and raise dividends are often great companies that appreciate in value as well.

Cramer recommended stocks like

ConEd

(ED) - Get Report

,

General Mills

(GIS) - Get Report

and

McDonald's

(MCD) - Get Report

as three great examples of dividend stocks.


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Cramer also suggested other stocks, that may not have dividends but represent great value at the moment. He said that

Best Buy

(BBY) - Get Report

,

Pepsico

(PEP) - Get Report

, a stock which he owns for his charitable trust,

Action Alerts PLUS, along with

Citigroup

(C) - Get Report

and

Boeing

(BA) - Get Report

are all attractive.

Google's Huge Upside

In the "Off the Charts" segment, Cramer went head to head with colleague Dan Fitzpatrick over the chart of

Google

(GOOG) - Get Report

, which Cramer set a price target of $700 on Nov. 9.

According to Fitzpatrick, Google could see $750 a share, calling the chart "the best in the book." Fitzpatrick said that Google's daily chart is seeing higher highs and higher lows, while not showing a single sign of weakness. He noted the company's "on balance volume," a measure of volume on up days versus down days, as showing considerable strength

Cramer agreed with Fitzpatrick's analysis and also raised his price target on Google to $750 a share as well. Cramer said that Google could earn $27 a share next year, and with a 21% long-term growth rate, should trade between 27 and 28 times its earnings.

Cramer said Google is a better company than it was in 2008, the last time it saw $750 a share. He said the company is benefiting from a multi-year bull market in online advertising spending, and is the reigning king of online ads. With online ads accounting for a paltry 12% of all U.S. ad spending, the upside for Google is huge.

In addition to its advertising juggernaut, Cramer said the company also has too many other great businesses, including mobile and video.

Luxury's Back

In the "Executive Decision" segment, Cramer sat down with Steve Sadove, chairman and CEO of

Saks

(SKS)

, to get the latest read on high-end retail in America.

Sadove said that consumers still want luxury in today's economy and are more focused on value, quality and price than ever before. He said that a year ago, the company's flagship New York City location was dead, but this year, the tourists are back.

Sadove explained that last year Saks had a glut of excess inventory and used heavy discounting to clear out that inventory. However this year, he said, sales have returned to a more normal pace. Sadove said that luxury is all about scarcity, getting that hot item before it sells out. And with inventory down 20% to 25% from last year's levels, items are once again in balance with supply and demand.

Sadove also explained that while the company didn't need to raise capital last year and restructure its balance sheet, he felt it was a prudent move that positioned the company for any economy. He said he's now quite comfortable with Saks' finances.

Touring the company's flagship store, Sadove showed Cramer the company's new eighth floor, which houses 100,000 pairs of shoes. Sadove called the show department the largest collection of designer shoes in the world, and noted that shoes are once again a hot commodity.

Sadove said that growth at Saks will come from all fronts, including the Internet, now the company's second largest store, as well as its outlet and full-line locations.

Mad Mail

Cramer told a viewer that he'd stick with natural gas, with stocks like

Chesapeake Energy

TheStreet Recommends

(CHK) - Get Report

, and would not be a buyer of solar stocks like

JA Solar

(JASO)

.

Cramer told a second viewer that the way to play the recovering job market is with

Yahoo!

(YHOO)

and not with

Monster Worldwide

(MWW)

.

Finally, Cramer told a viewer that

Home Depot

(HD) - Get Report

, a stock which he owns for his charitable trust,

Action Alerts PLUS,

Lowes

(LOW) - Get Report

and even

Wal-Mart

(WMT) - Get Report

are the best stocks to take advantage of cold, winter weather.

Lightning Round

Cramer was bullish on

Ciena

(CIEN) - Get Report

,

Sprint Nextel

(S) - Get Report

,

Qwest Communications

(Q)

and

Best Buy

(BBY) - Get Report

.

He was bearish on

Goldman Sachs

(GS) - 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 Pepsico, Home Depot.

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."

None of the information contained in "Mad Money" constitutes a recommendation by Mr. Cramer, TheStreet.com 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 TheStreet.com, 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 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.