Jim Cramer's 'Mad Money' Recap: Stocks Are the Rational Choice

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NEW YORK ( TheStreet) -- Is the U.S. stock market overvalued? Jim Cramer thinks not, he said on Mad Money Thursday. In fact, Cramer said stocks are the most rational choice among the many asset classes investors have from which to choose.

The market is truly divided, Cramer admitted, but while Europe falters the U.S. economy continues to strengthen. With inflation at bay and the price of everything from grains, chicken and beef to natural gas and the price at the pump on the decline, U.S. companies' earnings are strengthening as well.

Cramer said he sees the markets at an inflection point. Retail sales are strong, he said, as PVH Corp (PVH) indicated on last night's show. Auto sales are tracking toward 17.5 million units, up from just 9 million a few years ago. Everything except for housing continues to power higher.

With all of those positives going in our favor, Cramer said stocks may way more sense than bonds because stocks offer growth and income, with rates that will exceed bonds for the foreseeable future.

Cramer's Fantasy Team: Tight End

In the next installment of his "Fantasy Stock Portfolio," Cramer revealed his choice for tight end, a company that is both versatile and dependable -- 3M (MMM) .

Cramer said 3M, an Action Alerts PLUS holding, is an execution machine, with an astounding 4.8% core growth that has propelled its shares to new all-time highs. This company may be an industrial, but it's well diversified, with 35% of sales coming from the rapidly growing emerging markets, which is more than enough to offset an ailing Europe.

3M is all about innovation, Cramer continued, with near a third of the company's sale stemming from products that didn't exist just five years ago. 3M's 45 innovation centers around the globe continue to pump out new products that will offer growth for years to come.

Cramer said 3M is also shareholder-friendly, with a 2.4% dividend and a long 56-year history of dividend raises. The company also has an ample share buyback program as yet another way to reward shareholders.

With a track record like this, Cramer said that 3M was an easy choice for this year's fantasy team.

Cramer's Fantasy Team: Wide Receivers

Continuing with his fantasy stock portfolio, Cramer offered his picks for wide receivers: Tesla Motors (TSLA) , Netflix (NFLX) and Regeneron (REGN) .

Cramer said wide receivers are all about momentum, something that Tesla has in spades. He expects the company, and its stock, to have another record year.

Then there's Netflix, a company that has won the home streaming contest and is now able to raise prices with no one batting an eye. Even with shares up 30% so far in 2014, Cramer said he's not worried, as money managers tend to pile into the biggest winners going into the end of the year.

Finally, he said Regeneron remains a perennial favorite. The company's eye care franchise continues to deliver on its promises, while new products such as the company's anti-cholesterol drug should provide solid growth going forward.

Executive Decision: Angel Martinez

For his "Executive Decision" segment, Cramer went on location to speak with Angel Martinez, chairman, president and CEO of Deckers Brands (DECK) , a stock that's been making a comeback, up 154% from its 2013 lows.

Martinez explained that Deckers has made a quantum leap over the past few years, reinventing itself from just a wholesale vendor of shoes to omni-channel brands that have a new focus on the consumer.

While many retailers are suffering from "showrooming," where customers research products in stores then buy online, Martinez said Deckers is seeing "web-rooming," where customers research online but come into stores to try their shoes on in person and experience the brand firsthand.

Deckers is also about innovation, Martinez said, with new Hoka running shoes offering twice the padding with just half the weight. He said these new shoes are helping to grow the market, bringing new runners into the sport.

Cramer said the turn in Deckers is for real.

Lightning Round

In the Lightning Round, Cramer was bullish on Skyworks Solutions (SWKS) , Valero Energy (VLO) and Intel (INTC) .

Cramer was bearish on Sierra Wireless (SWIR) , CVR Refining (CVRR) , Sprint (S) , Manhattan Associates (MANH) , Advanced Micro Devices (AMD) and Motorola Solutions (MSI) .

No Huddle Offense

In his "No Huddle Offense" segment, Cramer offered viewers his picks for a diversified portfolio that's focused on yield, given that the troubles in Europe are likely to keep bond yields low for the foreseeable future.

Cramer said Verizon (VZ) , with its 4.3% yield, Royal Dutch Shell (RDS.A) , an Action Alerts PLUS name with a 4.3% yield, the new Kinder Morgan (KMI)  , another AAP holding with a promised 5% yield, along with Ventas (VTR) and Dominion Resources (D) , 4.4% and 3.4%, respectively, offers investors both a yield that's better than Treasuries and the opportunity for capital appreciation to boot.

To watch replays of Cramer's video segments, visit the Mad Money page on CNBC.

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-- Written by Scott Rutt in Washington, D.C.

To email Scott about this article, click here: Scott Rutt

Follow Scott on Twitter @ScottRutt or get updates on Facebook, ScottRuttDC

At the time of publication, Cramer's Action Alerts PLUS had a position in KMI, MMM, PVH and RDS.A.

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