Jim Cramer welcomed colleague Ron Insana to the "Mad Money" TV show Friday to defend his recent gutsy call to sell defensive stocks and buy into banks, insurers and home builders. On Thursday night's show, Cramer took issue with some of Insana's picks and pans, and tonight it was Insana's turn to fire back. According to Insana, we've reached a secular bottom in a lot of areas in the market, and with so many stocks priced for failure, he said there are incredible opportunities for investors.
Investor ApathyCramer said investors have become too negative, and no one seems to care about good news anymore. Cramer disagreed with this position, saying that the opportunities in the markets are seriously outweighing the risks. He said investors don't even realize how negative they've become and how they are ignoring the signal to buy. Where is all the negative sentiment coming from? Cramer said it's coming first and foremost from the government and the Obama administration, who seems to introduce new regulations or taxes just about every day of the week. Cramer said the Dow Jones Industrial Average could rise a few hundred points if only Congress would take a vacation already and stop holding hearings. Cramer said the second reason for all of the negativity is the decline in oil prices. He said that for some reason everyone seems to think if oil's falling, everything else should too. "But isn't cheap oil, gas and plastics a good thing," asked Cramer. He said the oil futures markets should have no bearing on the stock market, especially in light of recent manipulations. Cramer said he's not buying into the negativity. Instead he said he would be buying into stocks like Honeywell ( HON) and Home Depot ( HD), two stocks he owns for his charitable trust,
Speculation FridayCramer found a way to profit from the recent cyber attacks that plagued government Websites as well as the sites of both the NYSE and Nasdaq exchanges. He said that Internet security firm ArcSight ( ARST) may be at the beginning of a new speculative theme, as cyber attacks hit the mainstream. Cramer said protecting your company's data from attacks is becoming big business, and companies like ArcSight are at the forefront. The company is benefiting from both more and more high profile attacks and from increasing requirements for companies to log their computer activity for compliance purposes. Cramer said while ArcSight is a speculative play, it has everything he looks for, including a 34% growth rate, no debt, $91 million in cash on the balance sheet, new products and great traction with existing customers. He said while ArcSight trades at 33 times earnings, the earnings estimates are too low and investors could pay up to twice the company's growth rate for the stock. "There's a real need for cyber security," said Cramer, and ArcSight might just be the best way to profit from it.