RealMoney Radio: Housing Hasn't Bottomed

Cramer says that the industry will go lower before it turns back up.
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"There are two reasons why housing gets bought: lower interest rates and lower prices," Cramer said on his

"RealMoney" radio show Thursday.

And both are true now. "This is not genius," he said. It's the way every business cycle works."

Stocks such

Lennar

(LEN) - Get Report

and

Centex

(CTX)

bottomed out in July after analysts downgraded them as a group, but they've come back up.

Cramer said he's been getting feedback from hedge fund managers and their minions that he's dead wrong on housing. But those folks just want to bring stock prices down so they can buy, Cramer said. "Housing stocks have spoken."

Different industries are driven by different things, Cramer said, like interest rates, consumer spending, agriculture cycles and airline trends. Cramer recommends

Deere

(DE) - Get Report

and

United Airlines

(UAUA)

.

But with oil prices going lower, Cramer recommends getting out of tanker stocks and getting into defense companies such as

General Dynamics

(GD) - Get Report

.

"This is absolutely the right time to buy tech, because tech is on sale today," said Cramer.

Tech is down today because of options-expensing problems, which makes it a good time to buy stocks such as

Apple Computer

(AAPL) - Get Report

, he said.

To see the most recent edition of The RealMoney Radio Recap in its entirety, please click here. This recap is published every day around 3 p.m. ET.

Jim Cramer is a director and co-founder of TheStreet.com. He contributes daily market commentary for TheStreet.com's sites and serves as an adviser to the company's CEO. Outside contributing columnists for TheStreet.com and RealMoney.com, including Cramer, may, from time to time, write about stocks in which they have a position. In such cases, appropriate disclosure is made. To see his personal portfolio and find out what trades Cramer will make before he makes them, sign up for

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