Cramer's 'Mad Money' Recap: A Good Year After All
Cramer was also bullish on Europe, telling viewers they need to be invested in the region before the bottom becomes obvious to everyone. His ETF recommendation in Europe was the Vanguard MSCI Europe (VGK) , another Action Alerts PLUS holding.
Other areas of interest included the iShares S&P India Nifty 50 (INDY) to play the growth in India, the iShares MSCI Mexico (EWW) , to gain exposure to the booming Latin American economy, and its counterpart, iShares MSCI Brazil (EWZ) , as a way to play Brazil.
No Huddle Offense
In his "No Huddle Offense" segment, Cramer once again sounded off against the so-called "risk on, risk off" investing strategy. He said this hedge fund lingo isn't really a strategy at all and certainly didn't serve investors well in 2012.
Cramer said the S&P 500 delivered a 13.5% return in 2012, but also a 16% return if you included reinvested dividends. The problem is, if you're constantly trading in and out of stocks, you likely didn't get those dividends at all, let alone have a chance to reinvest them.
Then there's the strategy itself. What's risky? What isn't? Europe was supposedly risky, yet both European stocks and bonds fared pretty well in 2012, especially if you picked the right ones. Even as a sector strategy, those that were deemed most risky turned out to be the best investments.
In the end, "risk on risk off" ends up just turning into "buy high, sell low," said Cramer, and that's a strategy individual investors need to avoid in 2013.
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-- Written by Scott Rutt in Washington, D.C.
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