NEW YORK ( TheStreet) -- "Our soft patch is morphing into a hard patch," Jim Cramer warned the viewers of his "Mad Money"TV show Thursday. He said not only is the wrangling in Washington taking its toll, but interest-rate tightening at central banks in emerging markets is now cooling the only safe haven we've had for months. Cramer said investors can no longer hide in stocks with big international exposure, as the rest of he world is following the U.S. lead into the morass. Instead, he said, investors need to look for stocks that are part of larger, long-term secular trends. Trends like the need for more fuel efficient airplanes. Cramer said the bull market in aerospace rages on, and that's great news for Boeing ( BA) and Precision Castparts ( PCP). Other secular trends include the need to find more oil and gas. Cramer said that will protect stocks like Baker Hughes ( BHI), Schlumberger ( SLB) and Weatherford ( WFT). There is also a bull market in trucks, said Cramer, which plays right into the hands of Cummins ( CMI), a stock which he owns for his charitable trust,
Managing CostsIn the "Executive Decision" segment, Cramer spoke with John Faraci, chairman and CEO of International Paper ( IP), which just delivered a 13-cent-a-share earnings beat on rising revenues. The stock is up 41% since Cramer first noted it in September, 2009. Faraci said that International Paper's success comes from managing their costs, running things right and using their cash to build a better platform in the future. He said for the company's paper and packaging business, which has been in decline, the key has been to manage that business for what it is today and not what it was in the past. Another bright spot for IP has been the company's joint venture in Russia. Faraci said they have good assets in the right locations in Russia and are able to supply China with all the pulp they need. Looking domestically, Faraci commented on their proposed takeover of Temple-Inland ( TIN). He said that it did make an unsolicited bid, but he's hopeful that it will be a friendly transaction. He said IP is offering a 20% premium to Temple's all-time high, but the company will be patient and disciplined to ensure that International Paper's dividend remains secure. When asked about the wrangling in Washington, Faraci said America should never default on their obligations, but that doesn't mean it can continue to keep borrowing 40 cents of every dollar they spend. He said a deal will likely come in the 11th hour, but America needs a plan for sustainable growth along with entitlement and tax code reforms. Cramer said International Paper remains on his buy list, especially with its 3.2% dividend yield.
Sticking With Growth Stocks"This market doesn't want cheap or value stocks, it just wants growth stocks," exclaimed Cramer. No matter what the sector, the debate of growth vs. no growth rages on, he said. That's why stocks like Green Mountain Coffee Roaster ( GMCR) gained 16% today and why Chipotle Mexican Grill ( CMG) and Starbucks ( SBUX) continue to deliver. Meanwhile, other restaurants like P.F. Changs ( PFCB) flounder. Cramer said Apple and Amazon have it, but others like Intel ( INTC) and Hewlett-Packard ( HPQ), are now nothing but dead money. In biotech, Celgene ( CELG) has growth, while Bristol-Myers Squibb ( BMY) lacks. In supermarkets, Whole Foods Markets ( WFM) has it, while all of its rivals don't. Whether it's a stock like Sodastream ( SODA), up almost 9% today, or a lumbering giant like Exxon-Mobil ( XOM), Cramer said it's clear that the markets are thirsting for growth, and putting everything else out to pasture. Cramer said it's time to sell the slow stocks and buy into anything that's a fast grower.