Jim Cramer's 'Mad Money' Recap: Stay Along for the Ride
NEW YORK (TheStreet) -- "I'm not giving up on the stock market," Jim Cramer told his "Mad Money" TV show viewers Thursday, as he took on the bears who claim that a bubble is at hand and markets will soon crash.
Cramer said that while yes, it's true that the Federal Reserve has been propping up the markets with low interest rates and cheap money, their actions have also created a lot of "collateral positives," which are making up for spending cuts that are taking money out of the economy. The Fed's actions are not only making stocks attractive compared to every other asset class, they're also giving companies the ability to refinance and grow and hire, and giving the housing market a much needed kickstart, which ripples down to many other sectors.
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Given that now is the time of year when money mangers are insatiably buying stocks to solidify their portfolios for year's end, Cramer said it's hard to make a case to sell in the current environment. That's why he advised taking some profits, but staying along for the ride with everything else.
Executive Decision: Cheryl Bachelder
In the first "Executive Decision" segment, Cramer spoke with Cheryl Bachelder, CEO of AFC Enterprises
Bachelder explained that she felt it was important to let investors know that with consumer confidence waning, AFC was seeing a slowdown in its growth. That said, she noted that their guidance remains solid and Wall Street may have overreacted to the tempering of expectations. It has been a great year for franchisee profits, Bachelder noted, and Popeye's remains a best-in-class franchise.