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NEW YORK ( TheStreet) -- The calvary will be coming... eventually, Jim Cramer assured his "Mad Money" viewers Thursday. Cramer said investors might not know when, or at what price, the bottom will be at hand but it will happen. That's why investors need to remember their history -- there are sectors of the economy that do well when interest rates are on the rise, and those stocks can help your portfolio if you let them. So while the REITs and MLPs are getting crushed along with just about everything that has high yield including the drugs and utilities, other sectors like the financials, industrials and tech stocks are all getting ready to roar. Cramer said investors won't be helped by a stock that makes 3% in dividends but loses 15% in principal, which is why investing in the sectors that prosper during boom times is the way to go. The Fed is easing its bond buying because things are going well, Cramer reminded viewers, and that means industries will be building more factories and banks will be financing them and tech companies will be putting a ton of new hardware and software into them. Stocks like Eaton ( ETN) and PPG ( PPG) will soon be unstoppable, said Cramer, as will special growth stories like Starbucks ( SBUX), Restoration Hardware ( RH) and MasterCard ( MA). In the banking group, Cramer said all of the regional banks also remain very attractive. So while the market, still just off its highs, will continue to be in the blast zone for the next few days, the banks, techs and industrials may be ripe for the picking starting tomorrow.
How to Love Regional BanksThe regional banks have been among the most hated stocks for a long, long time, Cramer told viewers, but now that the economy is getting a little better, it's time to step up once the dust settles and put some money to work. Cramer said the regional banks are the bedrock of their local economies, which is why stocks such as Huntington Bancshares ( HBAN), BB&T ( BBT) and First Horizon ( FHN) all barely dipped despite today's horrible market action.
Many of these stocks are still trading far cheaper than they did just a few years ago. He noted that First Horizon used to trade for $39 a share but now sells for under $11, while Huntington used to trade at $29 and now is under $7. That's very cheap by historical standards, and why today's selloff had little effect. But more important than their cheap valuations is how banks make money. Cramer said banks will pay you 0.81% on a five-year CD but will, in turn, invest that money in a five-year Treasury yielding 1.38%. That might not seem like a big spread, he said, but it's more than banks have seen in a very long time and Treasuries will certainly see rates rise faster than the banks will raise their CD rates going forward. Institutional investors in bank stocks only care about one thing: net interest margin. Now that rates are on the rise, these investors will be returning to the regionals, which is why individual investors should be as well, Cramer said.
Marking UpIt's the end of another quarter on Wall Street, Cramer reminded viewers, and that means it's time for hedge funds and money managers to pile into this quarter's big winners to make themselves look a little better on paper. It's called "marking up," Cramer explained, and it works like clockwork. That's why he reviewed this quarter's biggest winners to see whether they're still worth buying. Leading the pack was First Solar ( FSLR), which rose 56% this quarter, thanks to its best-of-breed technology and a slowdown in Chinese dumping. Cramer said he missed the move in this stock and he's not a buyer. Next on the list was Advanced Micro Devices ( AMD), up 52% for the quarter. Cramer said this company should have a strong second half thanks to the Playstation 4 and new Xbox. He gave it his blessing to buy. Similarly, GameStop ( GME) is up 46% for the quarter, for many of the same reasons. Cramer said he'd be a buyer of this stock only on weakness.
Fourth was Micron Technology ( MU), which rose 36% this quarter. Cramer said this company is benefiting from a planned acquisition as well as the end of new manufacturing capacity coming online. He said Micron's DRAM and NAND memory businesses are both doing well. Finally, there's Activis ( ACT), a company Cramer said he also likes going into the second half of 2013.