Cramer's 'Mad Money' Recap: Hating Stocks Hurts Your Wallet (Final)
NEW YORK (TheStreet) -- Investors who shy away from stocks are "just plain wrong," Jim Cramer told his "Mad Money" TV show viewers Wednesday. Responding to a CNBC investor survey that ranked stocks as only the third best place to put their money, behind gold and real estate, Cramer said that it's ironic that so many people hate stocks despite the markets putting in the best quarter they've seen since 1998.
Cramer said he understands that investors may feel ripped off by the markets, but to stay away in droves is simply not a winning strategy. He said that the markets are giving investors multiple ways to win, including some that are making the true stock believers a ton of money.
The first way to win in today's markets is to buy what you love, said Cramer. The CNBC survey noted that nearly 53% of investors have at least one Apple (AAPL) product in their household, which is partly why shares of Apple are up 50% for the year and are a part of Cramer's charitable trust, Action Alerts PLUS.
Cramer said whether its Chipotle Mexican Grill (CMG) or Panera Bread (PNRA) or defensive names like Clorox (CLX) and Kimberly-Clark (KMB) , owning stocks in companies that make the products you use every day has been a terrific investment this year.
But the markets are offering investors even more gains with recent IPOs, noted Cramer. Of the 30 most recent deals to come public, only six were stinkers, with the rest appreciating admirably. Cramer called out today's IPO of natural foods maker Annie's (BNNY) as one example. This stock nearly doubled in today's trading and Cramer said it's likely "not done yet."
Annie's is not alone; Brightcove (BCOV) saw its shares pop 116% since its IPO and Yelp (YELP) is up 87% from its introductory price. That's why Cramer concluded by saying that the time is now for investors to learn how to fall in love with stocks again.