People need to know where to look for a bull market, Jim Cramer told viewers of his "Mad Money" TV show Monday. Right now, the place to be is in food, drug or telecom stocks, he said. Even though the current subprime loan problem looks pretty bad, every time there has been a crisis in the market, the Fed has cut rates, Cramer said. A crisis, he said, gets the Fed's attention and causes it to "slice and dice" rates, which in turn takes stocks higher. If people get "spooked out," they will miss the "Fed rate-cut nirvana," he warned, urging investors to take a longer-term view. All markets around the world are not linked, even though they may act like it, he said. Japan is down "big" because the yen has gotten too strong against other currencies. But contrary to popular belief, "this is not bad for American companies," Cramer said. "Their pain is our gain."
House Rules"The stock market is far from a casino, but sometimes the metaphor works," Cramer told his viewers. The investment banks, or "the house," want investors to get back to the table, he said. Therefore, for a short time -- for the next week or two -- the market should tilt the odds toward the customers, or the people who buy stock, and issue initial public offerings (IPOs) at prices below ordinary levels, Cramer said. "This makes it a great time to make money in IPOs," he said. When everything is "working" in the market, IPO issuers want people to pay more. But now they are offering IPOs at a discount, said Cramer, and investors should take advantage.
Playing DefenseCeradyne ( CRDN) CEO Joel Moskowitz joined Cramer on the show and said that the company does not have complete procurement for the Department of Defense. During Ceradyne's conference call, the company stated that "there would be another major request for a proposal that has not come out yet."
Lightning RoundCramer was bullish on Savient Pharmaceuticals ( SVNT), Express Scripts ( ESRX), Alcoa ( AA), Optium ( OPTM), Level 3 Communications ( LVLT), Bank of America ( BAC), Lamson & Sessions ( LMS) and Medtronic ( MDT). Cramer was bearish on CVS ( CVS), Cyberonics ( CYBX) and JPMorgan Chase ( JPM). For more of Cramer's insights during the Lightning Round,
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