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) -- With the bears once again predicting doom and gloom on a down day, Jim Cramer reminded viewers of his "Mad Money" TV show Thursday that most of the information thrown their way by the media is actually misinformation and misdirection.

Cramer once again faced the bears head on to separate fact from fiction.

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According to the bears, the popular "Cash For Clunkers" auto program was supposed to steal sales from the future. However in reality, auto sales are now on pace to sell 11 million vehicles this year, with


(F) - Get Free Report

leading the pack with excellent numbers.

The bears also predicted a new wave of new home foreclosures. But when that didn't happen, the bears predicted the

Federal Reserve

would begin raising mortgage interest rates. And when that didn't happen, the "shadow inventory" held by the banks was supposed to clobber home prices.

But as Cramer noted, none of these things came true. The bears are never held accountable for the stories they tell, said Cramer, and that hurts the average investor.

The bears also hate commercial real estate, said Cramer, yet stocks like

Vornado Realty

(VNO) - Get Free Report


Simon Property Group

(SPG) - Get Free Report

are at 52-week highs. Cramer said he's still a big fan of both

Boston Properties

(BXP) - Get Free Report


Federal Realty

(FRT) - Get Free Report


Cramer said the reality is that Cash For Clunkers and the new home-buyer tax credit worked. These programs helped stabilize the most unstable of markets, he said. The negative commentators are wrong, plain and simple, and they don't have investors' best interests in mind. Cramer said these people are not friends, and investors need to remain suspicious of anyone predicting a market collapse.

Banks to Avoid

In the Thursday "Sell Block" segment, Cramer told viewers that under no circumstance should they consider buying the European bank stocks. He said banks like

Royal Bank Of Scotland

(RBS) - Get Free Report


Lloyds Bank

(LYG) - Get Free Report

, along with





(BCS) - Get Free Report

, should be avoided at all costs.

Cramer likened the management of these banks to "The Three Stooges," citing a pattern of irresponsible lending. He said that not only did the European banks buy the worst of the U.S. mortgage backed securities in the years leading up to the crisis, but they also relied on


(AIG) - Get Free Report

to help protect their losses.

Cramer said while the news of financial problems at Dubai World rocked the markets earlier in the week, it should come as no surprise that the European banks are on the hook for a sizable chunk of the estimated $59 billion the Dubai resort is likely to default on.

Given these banks' histories of bad decisions and poor management, Cramer said he wouldn't go near these stocks with a 10-foot pole.

Afghanistan War Bounce

Investors looking for a way to profit from a troop surge in Afghanistan have a whole host of companies to choose from said Cramer. He said that while the war in Afghanistan does not involve big weapons systems from the large defense contractors, there are still a number of smaller companies that benefit from more troops.

Cramer said that

OshKosh Trucks

(OSK) - Get Free Report

makes mine resistant vehicles, and should see a boost from additional trucks being ordered. He also noted that

Harris Corp


is the way to play increased communication needs in the region, while


(MANT) - Get Free Report

services all of the newly outfitted vehicles.

Cramer also reiterated his buy recommendations on

American Science & Engineering



FLIR Systems

(FLIR) - Get Free Report

, two stocks he highlighted in October as part of his homeland security series.

There are also private contractors that will benefit from additional troops, said Cramer.

Fluor Corp

(FLR) - Get Free Report

services northern Afghanistan while


(DCP) - Get Free Report

provides services to the southern half of the country, he said.

Finally, Cramer mentioned ammunition maker

Alliant Techsystems


as a company that will not only benefit from more troops, but is also very shareholder-friendly to boot.

Am I Diversified?

Cramer played "Am I Diversified" with callers to see if their portfolios have what it takes. The first caller's portfolio included

Spectra Energy

(SE) - Get Free Report





Kinder Morgan




(IVC) - Get Free Report



(WMT) - Get Free Report


Cramer said because Walgreens and Walmart are both retailers, he'd sell Walgreens. He said that Spectra and Kinder Morgan are both energy stocks, and he'd sell Spectra. Cramer said this portfolio needs a financial and an industrial stock.

The second caller's top holdings included

General Mills

(GIS) - Get Free Report


Procter & Gamble

(PG) - Get Free Report


Wells Fargo

(WFC) - Get Free Report



(KO) - Get Free Report



(PFE) - Get Free Report


Cramer cautioned that Coca-Cola, General Mills and Procter & Gamble all trade together, so he'd be a seller of General Mills and buy an industrial stock to take its place.

The third caller had


(VZ) - Get Free Report



(MSFT) - Get Free Report



(BP) - Get Free Report


Abbott Labs

(ABT) - Get Free Report



(KMB) - Get Free Report

as their top five stocks.

Cramer said this portfolio is exactly what he's looking for, and offers some great dividend yields.

Lightning Round

Cramer was bullish on


(GOOG) - Get Free Report


(AMZN) - Get Free Report



(AAPL) - Get Free Report


Marathon Oil

(MRO) - Get Free Report


J Crew




(GES) - Get Free Report


JM Smucker

(SJM) - Get Free Report


He was bearish on


(KEY) - Get Free Report





Final Note

In a final note, Cramer said he'd be a buyer of

Bank Of America

(BAC) - Get Free Report

, a stock which he owns for his charitable trust,

Action Alerts PLUS, now that the company has successfully completely its secondary offering.

-- 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 Bank of America, Procter & Gamble, Wells Fargo, BP.

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.