Jim Cramer's 'Mad Money' Recap: 5 Reasons Why More Americans Are Bearish


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NEW YORK ( TheStreet) -- The bulls are the smartest and boldest investors out there, Jim Cramer told his Mad Money viewers Monday. Then why do so few Americans own stocks, especially after the market's spectacular multi-year run? Cramer offered up his top five bearish reasons.

First was the constant Federal Reserve chatter. Surely with U.S. employment strengthening the Fed must be raising interest rates soon, right? No so, said Cramer. It wouldn't make any sense to raise our rates when the rest of the world is faltering.

Read More: 7 Stocks Warren Buffett Is Selling in 2014

But isn't the market rigged given the flash crash, high frequency trading and the terrible Facebook (FB) IPO? Cramer said for every Facebook, there's a GoPro (GPRO)  -- and while high frequency trading acts as a tax on all investors, it doesn't preclude them from making money.

Cramer said the third bear case is the bull market is too old. But he also noted CEOs aren't standing idly by, they're actively making money for shareholders with mergers and investments, inversions and buybacks. Annie's (BNNY) is just the latest example, up 37% today on a bid from General Mills (GIS) .

Fourth, Cramer said many market pundits simply fear being wrong, so they stay bearish. Why stick your neck out and risk being wrong, he added, no one ever criticizes being "cautious," even if it keeps investors from great gains.

Finally, Cramer said the bears simply don't do their homework. They mindlessly buy exchange-traded funds and index funds at the exact time they should be doing research and finding the next GoPro or Annie's.

The bulls are the smart ones in this market, Cramer concluded. Let's hope they stick around for a long time to come.

Dress Up Your Portfolio

It's time for investors to take a second look at the apparel stocks, Cramer told viewers. While some categories, like handbags, remain downright awful, others are starting to look up and the time to pounce is now.

Cramer said that Under Armour (UA) is one of those stocks -- this company doesn't trade with the apparel group, it trades with the high multiple stocks and those are once again in favor.

Cramer also took a cue from the conference calls of Kohl's (KSS)  Macy's (M) and PVH Corp (PVH) to determine that inventories are low, and that's great news for a stock like VF Corp (VFC) , which, like PVH, a stock Cramer owns for his charitable trust, Action Alerts PLUS, is also big into denim and has the added kicker of its North Face brand just in time for the colder weather.

Then there's footwear. Cramer said he's still a huge fan of both Sketchers (SKX) , up 89% so far in 2014, and Deckers Brands (DECK) , up just 14%.

Read More: How Walmart, Target and Best Buy Are Starting to Compete With Amazon

Whether its high tech, low inventories or new products, Cramer said the apparel group has something for everyone.

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