Cramer's 'Mad Money' Recap: The Year of Active Investing (Final)

Cramer says investors should break the shackles of passive investing and take control of their own financial destiny.
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NEW YORK (

TheStreet

) -- "Put an end to your passive investing," Jim Cramer told the viewers of his "Mad Money" TV show Monday. "It's time to take control of your future."

Cramer said despite all his best efforts, investors are still selling their stocks in favor of "safer" bond funds, a strategy which he called "just plain nuts."

"Stop selling your stocks," Cramer yelled. He said the crash has already occurred and the recovery is now well under way. He said investors who feel they're being responsible by moving to bond funds or index funds are simply being reckless.

He reminded viewers that the

S&P 500

is down 24% over the last 10 years, as are the index funds that track it. Yet during that time, Cramer said there have been incredible opportunities to pick individual stocks.

"Stocks didn't hurt you," Cramer told viewers, "the passive, 'buy and hold' philosophy of investing did." Cramer told viewers they can invest by themselves. He then proclaimed 2010 to be the "year of active investing."

Cramer began the year by recommending high yielding dividend stocks, names like

ConEd

(ED) - Get Report

and

AT&T

(T) - Get Report

, which offer not only yield and a favorable tax treatment on that yield, but also capital appreciation to boot. He also named the

ProShares Financial Preferred Fund

(PGF) - Get Report

and

Kinder Morgan Energy Partners

(KMP)

as two other high yielding names.

Cramer said investor need to also look for growth, in names like

Caterpillar

(CAT) - Get Report

,

BHP Billiton

(BHP) - Get Report

and

Boeing

(BA) - Get Report

, all of which should see multi-year strength.

"You do not want to be sitting on the sidelines," he concluded, "it's time to take control."

Investment Themes for 2010

Cramer unveiled the first of his "Big 10" investment themes of 2010, with the focus on the shortage of energy around the world. He said the oil and natural gas stocks will be the place to be this year.

Cramer recommended a multitude of names in the sector, including

Baker Hughes

(BHI)

and

Weatherford

(WFT) - Get Report

, a stock which he owns for his charitable trust,

Action Alerts PLUS. Cramer also recommended integrated oil companies that are growing reserves, such as

Marathon Oil

(MRO) - Get Report

Chevron

(CVX) - Get Report

, two more Action Alerts Plus names.

Cramer also continued to pound the table on natural gas, calling it the bridge fuel the country needs for energy independence, homeland security, job creation and economic prosperity.

He recommended names like

Chesapeake Energy

(CHK) - Get Report

,

Devon Energy

(DVN) - Get Report

and

Ultra Petroleum

(UPL)

. Cramer stopped short of recommending

Linn Energy

(LINE)

, a stock which he said he still likes, but one that has run up too high to get behind.

Overseas Exploration

In the "Executive Decision" segment, Cramer spoke with Jim Hackett, president and CEO of

Anadarko Petroleum

(APC) - Get Report

, which is up 19% since Hackett last appeared on "Mad Money" on Aug 24.

Hackett said Anadarko is continuing to develop the natural gas and oil sides of its business. He said that new resources and technology are providing more supply and lower prices every day.

Hackett praised his company's international efforts, saying that in countries like Algeria, the country is not only friendly to the U.S., but it also wants more development of their local natural resources. He said that in many cases it's been easier to drill abroad than it is here in the U.S., given that our country has become complacent and is not responsibly developing the resources we have.

Turning to natural gas, Hackett agreed with Cramer's views on the fuel being the only real answer for the next several decades, until better alternatives can come into fruition. He said the natural gas industry is working hard to educate the right members in Washington and put real money behind their efforts to get natural gas into the country's energy plan. "This is the fuel, this is the time," said Hackett.

Cramer said Anadarko has the best model in the business and continues to recommend it.

Natural Gas Trucks

Cramer spoke with David Demers, founder and CEO of

Westport Innovations

(WPRT) - Get Report

, a company that converts diesel trucks to run on alternative fuels. Cramer called the company speculative, but noted its prospects could be huge.

Demers did not characterize his company as speculative, saying that the country needs a new fuel "and natural gas is that fuel." He said that his customers are screaming for a cleaner, lower cost alternative to gasoline.

Demers explained that his company started with vehicles that refuel at a central depot, such as buses and garbage trucks, but is now expanding to highway trucks, think 18-wheelers, which refuel at multiple fueling stations as they travel. He said operating a natural gas truck is just the same operating a traditional, diesel vehicle.

When asked about the Natural Gas Act currently stalled in Congress, Demers said that while the legislation is important, economic forces are happening even without government intervention. He said the reality is that oil is in short supply, and change is going to happen.

Lightning Round

Cramer was bullish on

Windstream

(WIN) - Get Report

,

Akamai Technologies

(AKAM) - Get Report

and

Apple

(AAPL) - 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 Weatherford, Chevron, Apple and Marathon Oil.

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.