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.
Mad TweetsIn the "Mad Tweets" segment, Cramer responded to questions sent via Twitter to @JimCramer. When asked about whether Wendy's (WEN) would be a better buy than McDonald's (MCD) , Cramer went in-depth to explore the two options. He said that while the new burgers and fries at Wendy's may have been enough to dethrone Burger King as the No. 2 fast-food chain in the U.S., that doesn't necessarily mean it's the better stock.
When it comes to the taste of the food, Cramer noted that Wendy's has always had the better fare, at slightly higher prices. But when it comes to investing, execution is what matters most. He said that McDonald's is a well-oiled machine when it comes to execution and practically runs itself. That's why the company was able to report a steady increase in same-store sales throughout last year, while Wendy's only saw one quarter with same-store growth of 5%.