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NEW YORK (
) -- 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
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
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
Simon Property Group
are at 52-week highs. Cramer said he's still a big fan of both
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
, along with
, 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
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
makes mine resistant vehicles, and should see a boost from additional trucks being ordered. He also noted that
is the way to play increased communication needs in the region, while
services all of the newly outfitted vehicles.
Cramer also reiterated his buy recommendations on
American Science & Engineering
, 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.
services northern Afghanistan while
provides services to the southern half of the country, he said.
Finally, Cramer mentioned ammunition maker
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
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
Procter & Gamble
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
as their top five stocks.
Cramer said this portfolio is exactly what he's looking for, and offers some great dividend yields.
Cramer was bullish on
He was bearish on
In a final note, Cramer said he'd be a buyer of
Bank Of America
, 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.
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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 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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