Cramer's 'Mad Money' Recap: When Bears Become Bulls
NEW YORK (TheStreet) -- Hedge fund manager John Paulson made billions betting against housing, Jim Cramer said on "Mad Money" Wednesday. Now that Paulson's turned bullish, you should, too.
Cramer said he was shocked at how bullish Paulson was when interviewed at CNBC's Delivering Alpha conference earlier Wednesday. He said Paulson was known as one of the biggest bears betting against housing in 2008 and 2009, but now the famed fund manager told investors their best bet would be to buy a home, and their second would be to buy another one.
Paulson is now a fan of AAA-rated mortgage bonds, said Cramer, the same bonds that he despised just a few years ago. That news made Cramer reiterate his recommendations of companies such as Realogy
Cramer said he's also still a fan of Bank of America
Investors should still avoid the home builders, however, Cramer cautioned, as he's waiting to see if the most recent spike in interest rates have slowed home buying in the short term. But for the rest of the sector, it's simply too powerful to bet against.
When a sector's biggest bear becomes its biggest bull, it's time to listen, Cramer concluded.
Drinks and Snacks
What other takeaways did Cramer glean from the Delivering Alpha investor conference? He said fund manager Nelson Peltz had some of the best ideas, including PepsiCo
Cramer said while Peltz felt PepsiCo could shoot to $178 a share if it bought Mondelez, even without such a deal he's still a fan because the company has excellent management and it's clear the drink and snack combination is working well. Peltz also liked DuPont
Other guests at the conference liked Express Scripts