Editor's note: This recap was last published on Dec. 28, 2009. NEW YORK ( TheStreet) -- "You can never afford to stop learning," Jim Cramer told the viewers of his "Mad Money" TV show Friday. He said that even Wall Street veterans don't know everything, and unless investors keep learning, the markets will run circles around them. That's why he unveiled new rules for investing in turbulent markets. Rule No 1: A bear market rally is still a rally. Cramer said this rule should be obvious, but conventional market wisdom still seems to think that a bear market rally is not worth profiting from.
The China CardRule No. 2: America no longer rules the roost. For the better part of a century, America was the pre-eminent global economic superpower, said Cramer. "But all that's changed," he continued. He said that the United States has now been replaced by communist China. "China is now more important," said Cramer, "it's simply a fact of life now and we have to get used to it." Cramer said until investors come to terms with this fact, the markets will make them crazy. "Just look at the facts," he said. "While the U.S. issues trillions of dollars in debt every year, who is the only country big enough to buy them? China," he said. "While U.S. banks teetered on the precipice, Chinese banks weren't even flinching." It was Chinese demand for resources, said Cramer, that powered much of the bull market that peaked in 2007. And it's the Chinese recovery that's helping to stabilize things now, he continued. Whether it's materials or oil, machinery or technology, all roads lead to China, he said. "It's time to fact the facts, The People's Republic Of China is the most important Capitalist country," said Cramer.
Herd StrategyRule No. 3: Following The Herd Can Make You Money. There is no tried and true way to make money piggybacking off of the most successful investors out there, said Cramer, but there are easy gains to be made by following the herd if you do it right. Cramer said some patterns are easy to spot. As the market rises, investors pour money into mutual funds, and those funds, in turn, keep on buying, sending stocks even higher. And as one fund starts beating the markets, you can bet investors will notice and continue pouring new money into it, said Cramer. Since no large fund can buy a meaningful amount of stock without moving the price, anticipating these large fund moves is a solid strategy, he said. How does the strategy work? Find a successful fund, one that's been buying recently and see what they're buying and what they're core holding are. If you also like the fundamentals of the company, buy some. Fund managers like to buy more of the stocks they already own, said Cramer, especially if those stocks are working. Cramer said this method of investor is battle tested and always comes up with aces. He said as long as investors are monitoring their funds quarterly, they will profit. Watch for turning tides however, said Cramer, if the fund begins losing money, their new investments will dry up and so will your profits.