What's Missing in the Market; 3 Short Ideas That Don't Work: Cramer's Best Blogs
NEW YORK (TheStreet) -- Jim Cramer fills his blog on RealMoney every day with his up-to-the-minute reactions to what's happening in the market and his legendary ahead-of-the-crowd ideas. This week he blogged on:
- what's missing in this market; and
- three short ideas that just aren't playing out.
Click here for information on RealMoney, where you can see all the blogs, including Jim Cramer's -- and reader comments -- in real time.
What's Missing in This Market
Posted at 10:40 a.m. EDT on Friday, May 10
Now I know why I kept Merck
You simply can't get away from the need for good yield in an era of commodity inflation, and these stocks give it to you.
Today is a day, by the way, where I realize what is really missing in this market: high-yielding bank stocks. There was a time when you would reach for a Bank of America
But we keep getting force fed into the same drugs and foods because despite the bountiful return from so many companies' bottom lines, it isn't like these companies can double their dividends routinely.
For example, I was acutely aware when I interviewed Clorox
Let me ask you: If Clorox raises its dividend by 6% would it make a big difference to you? Not to me.
But if we aren't getting any rate increases any time soon, it will certainly make a difference to the big fixed-income boys who have given themselves carte blanche to buy stocks to pick up yield, and Clorox is about as safe as it gets -- unless rates tick upward by a hair. That's why something that's 4% to 5% is so much better, and we just don't have enough of them.
So, we circle back to the likes of Merck and GlaxoSmithKline
At the time of publication, Action Alerts PLUS, which Cramer co-manages as a charitable trust, was long GSK, JNJ, MRK.
Three Short Ideas Just Aren't Playing Out
Posted at 12:38 p.m. EDT on Thursday, May 9
The action in Tesla Motors
Take Tesla. Here's an $8 billion company that is going to make 21,000 cars that many of the intelligentsia set thinks are worthless. The party line on Tesla is that Chairman and CEO Elon Musk is a blowhard who is not to be trusted. They don't believe that the company is actually profitable, as Musk claims it is. They don't believe the financing numbers. They don't believe the guarantees.