Cramer told viewers of his "Mad Money" TV show Monday that it might be time to take some money out of stocks and put it into plain old saving accounts. He said while it's not time to sell everything, he advised viewers that if they need cash in the next five years, a Federal Deposit Insurance Corp. (FDIC) insured savings account is the only way to guarantee your money will be safe. Cramer went on to say that investors would be foolish to keep all of their money in stocks in such a volatile market. With some many questions still looming about the recently passed bailout package, Cramer outlined his plan for what he government should do next. Cramer said the first thing that needs to happen is the FDIC needs to stop seizing banks and announce once and for all that they're done with seizures. With the bailout package now in place and the FDIC insurance limits raised to $250,000 per account, he said the market has the tools it needs to work out the rest of its problems without government intervention.
Cramer: Don't Just Sit There
Cash Is KingCramer returned to the old adage "it's better to be safe than sorry" when reiterating to viewers that they should sell at least 20% of their portfolios and move that money into safe, FDIC insured savings accounts.
A Flight to SafetyCramer spoke with Zan Guerry, chairman and CEO of personal products maker Chattem ( CHTT), to see if the company fits the bill as a safe, recession-proof place to invest. Guerry said that most of Chattem's products, including Gold Bond, Icy Hot and Act mouthwash, are things people have to use regardless of the economy. He said the company is in a strong position, with a solid balance sheet and $5 a share of free cash flow. When asked where the best place was to invest that free cash, Guerry said that Chattem is being conservative and is investing in advertising and building its brands. However, Guerry also noted that if an acquisition opportunity arises, the company will certainly seize that opportunity. Cramer said Chattem has both strong brands and declining raw costs going in its favor. Chattem, he noted, also recently pushed through a 5.4% price increase to further bolster its bottom line. With 65% of the company's sales coming from its six top brands and all six of those brands being No. 1 in their categories, Cramer called Chattem one of the ultimate safety stocks.