NEW YORK ( TheStreet) -- "We're running out of reasons to hate stocks, " Jim Cramer told his "Mad Money" TV show viewers Monday, after another strong rally on Wall Street. Cramer said the facts haven't changed, they simply weren't as bad as people forecast. Cramer explained that all of the negativity on Wall Street only made sense if the economy was following the 2008 scenario into a steep recession. But with a Lehman Brothers-style collapse in Europe increasingly being taken off the table, the reasons to hate stocks are diminishing. The markets have been helped by a number of factors, said Cramer, including the news that the euro nations are now willing to nationalize their weakest banks and are willing to work together to bail out others. Here at home, Cramer noted that our economy has been aided by a 75- cent drop in the price of gasoline, which led to a stronger-than-expected back to school shopping season. Even hiring and rail car volumes are beginning to look up. Cramer said there are still some negatives in the markets, like the price manipulation of oil, and the fact that the banks still have serious headwinds to combat. He still advised selling any and all banks stocks that may still linger in investors' portfolios. That said, Cramer noted that the cyclicals and the oil stocks are now ripe for the picking, especially the ones with dividends that pay investors to wait for the recovery to fully materialize. "2008 is not the right scenario," Cramer concluded, "and after today, that should be obvious to everyone."
Deere Looks AttractiveIt's time to buy some Deere & Company ( DE), Cramer told viewers, as he featured the stock owned by his charitable trust,
Best of BreedNow that Fortune Brands has been broken up into three companies, Cramer said that Beam ( BEAM), Fortune's former liquor unit, is the one to buy. Cramer explained that the old Fortune Brands, which made everything from golf equipment to kitchen cabinets to premium liquor, never really made much sense under one roof, but now that Beam is a best of breed, stand alone pure-play on liquor, it's the only division that matters. Unlike all other spirits companies, Cramer said Beam is the only one that's not family-owned or mired with complex voting issues that would prevent a takeover. He said Beam would be an excellent fit for a company like Diageo ( DEO), which also specializes in quality liquors. Beam is also a company that works well no matter what the economy, said Cramer, as evidenced by the company's August volumes, which rose by 11.9%, far higher than the industry average of 4.7%. Cramer said that Beam has a "magic formula" which includes investing in its brands and marketing, while at the same time innovating on new products. Nearly 25% of Beam's growth stems from new products, he noted. Beam also has pricing power, said Cramer, and the company pays a respectable 1.6% dividend as well. He said that Beam does trade at a premium multiple, but considering all the company has going for it, it deserves that multiple.