NEW YORK ( TheStreet) -- "When it comes to making money in stocks, I thought last night's State Of The Union speech was pitch perfect," Jim Cramer told the viewers of his "Mad Money" TV show Wednesday, as he recapped President Obama's performance last night from a uniquely market-based perspective. Cramer said while the pundits may rant that the president's speech was "not so hot," Cramer said he thought the speech was terrific, far better than what he expected and certainly better than the speeches of the past two years. Cramer noted that in his opening remarks, Obama mentioned the stock market as a sign of rising economic health, and continued later to call for the harnessing of private business to make America more competitive on the global landscape. "What's not to like?" asked Cramer. He said it's remarkable to hear Obama's about face, from one who constantly attacked business to one who now embraces it. "Americans don't just want to get by," said Cramer, "they want to make money and do well." That's why Obama's emphasis on American companies, and by association the stock market, will be great for American 401K's and IRAs, he said. Cramer called last night's speech a "multiple expander," an event that breathes new life into the broader markets, much as former Speaker of the House Nancy Pelosi's anti-business agenda was a "multiple contractor" that tempered stock prices. Sure, there may not have been any specific stocks mentioned in last night's address, said Cramer, but looking at the broader picture, from the market's perspective, Obama should be applauded.
Secondary Offering Bonanza"There are very few giveaways in this market," Cramer told viewers, but bank stocks that repay their TARP loans may be one of them. Cramer said after reviewing several banks that have raised money through secondary offerings of stock, the pattern is clear, invest in the secondary and make money. Cramer said when Fifth Third ( FITB) recently raised $1.5 billion in a secondary the stock rose 4%. Huntington Bancshares ( HBAN), Cramer's speculative stock of the year, raised $920 million on Dec. 13 and those shares are up 12%. First Horizon's ( FHN) secondary netted 8%. And the list goes on to include, State Street ( STT), BB&T ( BBT) and PNC Financial ( PNC), a stock which Cramer owns for his charitable trust,
Housing Recovery On"You want answers on housing, forget the headlines," said Cramer, as he debunked the notion that a recovery in housing will never come. Cramer said that just about every negative pundit out there has been using the Case-Shiller housing index as proof positive that the housing market continues to crumble. But the facts are that housing prices have been stable for almost a year, said Cramer, if you use the correct data. According to Case-Shiller, housing prices dropped another 1% in November, down 1.6% year over year. The problem? Case-Shiller only tracks 20 major markets across the country. "This isn't a benchmark," said Cramer, who likened the index to using the Dow Jones Industrial Average as the benchmark for the entire S&P 500. Cramer said he looks to the Federal Housing Finance Agency, or FHFA, Housing Index, which measures finance activity in every zip code. This index shows home prices unchanged on a seasonally adjusted basis. Cramer said he also likes the National Association of Realtor data, which showed existing home sales up 12.3% in December and noted that sales have been up for five of the past six months. Even the Census Bureau shows median home prices increasing, said Cramer. But even if investors discount all of these metrics, they should pay attention to the housing-related stocks, which are a leading indicator looking six months into the future. Here, Cramer said it's clear that stocks like Lowes ( LOW) and Home Depot ( HD), along with Ethan Allen ( ETH), Masco ( MAS) and Owens Corning ( OC) are all up big from their lows. "Forget the Case-Shiller Index," Cramer told viewers, adding the housing recovery has already begun.