Cramer's 'Mad Money' Recap: Seller's Remorse
NEW YORK ( TheStreet) -- The markets are developing a bad case of seller's remorse, Jim Cramer told "Mad Money" viewers Monday. He said that after seeing stocks they've sold only go higher, eventually investors just don't feel like selling anymore.
Somewhere the market's psychology shifted, said Cramer, and many sellers now find themselves kicking themselves for selling instead of counting their winnings. Cramer said he's been bit several times at his charitable trust, Action Alerts PLUS, by stocks he sold for very good reasons, only to watch them tick higher day after day.
Case in point, Boeing (BA) . Cramer said he sold Boeing amid the last round of Dreamliner worries at $72 a share. While the stock did drop $1 afterwards, it turned and rallied to $82 despite the Dreamliner's new battery woes.
Cramer also noted McDonald's (MCD) as another botched sale. He said his sale at $85 a share was totally wrong because that stock is now near $98. The same holds true for Wells Fargo (WFC) and Southwest Energy (SWN) . Surely natural gas would rally, thought Cramer, and it did -- right after he sold.
Cramer said when seller's remorse begins to kick in on a wide scale, eventually sellers get tired of getting burned and stop selling, which then becomes a self-fulfilling prophecy as the supply or shares dwindles and prices tick even higher. That's where the markets are now, Cramer concluded, leaving his charitable trust looking for new entry points to get back in.
There's a bull market in private equity dealmaking, Cramer told viewers, and that means investors need to take a second look at asset managers that have exposure to this red-hot sector. He said that of the group, BlackRock (BLK) , another Action Alerts PLUS holding, sits at the top of his list.
Cramer explained BlackRock doesn't have the most private equity exposure, but it is a well-diversified company that happens to dominate the exchange-traded fund market, another sector that has been on fire of late. BlackRock currently controls 40% of the ETF business. With stocks on the rise, ETF popularity with investors is only likely to climb. BlackRock also sports a 2.7% dividend yield.
Outside of BlackRock, Cramer said he's also bullish on Blackstone (BX) . That stock has rallied 30% since the fiscal cliff debacle and the company's IPO business is also accelerating.
Cramer said all of these firms will give investors exposure to not only the private equity market, but also to all of the other hot places to be when stock market dealmaking and investing heats up.