Cramer's 'Mad Money' Recap: A Rally Based on Facts
NEW YORK (TheStreet) -- Is the market's recent surge higher based solely on hope? Jim Cramer told his "Mad Money" TV show viewers Monday that he's not buying that explanation. Cramer said this rally is based on facts, which is why he no longer fears the future.
Make no mistake, there are plenty of sectors that are relying on hope, said Cramer, but they're easy to distinguish from the good ones.
Obviously, the international banks are trading on hope, he said, hope that the Europeans will finally save their economies. That's why Cramer said he's not a fan of these banks, other than J.P. Morgan Chase (JPM) , a stock he owns for his charitable trust, Action Alerts PLUS.
Cramer said the industrials are hopeful the Chinese economy will recover, which is why stocks like Freeport McMoRan (FCX) , Caterpillar (CAT) and 3M (MMM) trade higher on every bit of bad news. Surely the Chinese will have to do something eventually, won't they?
Other sectors, like the natural gas stocks and even the transports, like FedEx (FDX) , are also hopeful that the world's economies will begin to gain steam.
However, there are plenty of sectors moving on cold, hard facts, like the fact that bank CDs and bonds pay next to nothing -- which makes the likes of Verizon (VZ) , Kraft (KFT) and Home Depot (HD) , with their bountiful dividend yields, very attractive.
Retail is also on fire, said Cramer, just look at Costco (COST) or Target (TGT) or PVH Corp (PVH) . Housing is also strong, which we see in Owens Corning (OC) , Stanley Black & Decker (SWK) and Toll Brothers (TOL) .
Cramer said any of these names is a good place to invest.