Cramer's 'Mad Money' Recap: Get Off the Sidelines (Update 2)
(Story updated to add Cramer's Lightning Round picks, his comments on a New York Times op-ed piece on Goldman's greedy behavior and his Mad Tweets segment.)
He said it's time to come off the sidelines, sell those bank CDs earning 0.4% interest and invest in great American companies.
Cramer acknowledged that investors have every right to be skeptical of the markets, especially given that the last time the averages saw these levels we were on the cusp of a horrific decline. But things are different now, as he compared the markets of 2007 versus those of today.
Back in 2007, Cramer said the markets were being driven by a rise in commodities. Everything from oil to metals to fertilizer was red hot thanks to a booming Chinese economy. Meanwhile here at home, our housing market and financial system were on the brink of collapse, about to take consumer confidence with it.
So where are the markets today? Cramer said today's markets are being driven by pure growth, U.S. growth. He said everything from health care to retail to technology, even the homebuilders, are just beginning to show sustainable recoveries.
Then there's Apple (AAPL) , another Action Alerts PLUS name. Cramer said while some investors can't fathom Apple's historic rise, he remembers a time when Coca-Cola (KO) and Pfizer (PFE) were the most valued companies on Wall Street. Apple is so much more than just a technology company, he said, adding it's a communications, education and entertainment company as well, all of which makes it worth its valuation.
With a pickup in commercial construction and improved job growth looming just around the corner, the markets can most certainly take out its recent highs and march into bull-market mode, he said.
Speculation should be an important part of every investors balance diet, Cramer told viewers, as he recapped his "Magnificent Seven" speculative stocks to show viewers just how lucrative this under-rated method of investing can be. He said that every investor should have one spot in their portfolio dedicated to a speculative stock that adds excitement to their holdings.
Cramer's magnificent seven stocks included Pharmacyclics (PCYC) , a stock up 393% over the past 12 months, Medivation (MDVN) , a biotech up 320%, Idenix Pharmaceuticals (IDIX) , up 277%, and Vivus (VVUS) , up 224%.