Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Action Alerts PLUS 2013 Investment Outlook

Tickers in this article: ABT BA PG UTX WY
NEW YORK ( Action Alerts Plus ) -- Hi, I'm Stephanie Link. I'm the co-portfolio manager of Action Alerts Plus , and here with me is Jim Cramer. We want to talk about our 2013 portfolio strategy. Jim, 2012 was pretty good for us.

Jim Cramer:

16.7 percent which is better than the S&P and you know how hard that is playing with one hand behind out back because everybody gets our alerts before we can take action. I always laugh because when I first started, you know, everyone told me in the money management business, 'Well, you idiot. First of all you're revealing your strategy. Second, you're giving them a head start.' You know, what is was always about, giving people a head start, head start in what we're up to, and that's why I feel good about it.

Stephanie Link:

And it's more than just about stock picking. It's also about education which I think is really very valuable for our subscribers. So 2012, unfortunately is behind us. We have to turn the page.

Jim Cramer:

I know. I always felt that way at the beginning of the year when I was a hedge fund manager. It's like, 'Oh my God. The clock started again.'

Stephanie Link:

I know, but we do have some good themes for 2013. So maybe we can through that, a few of them. You can start and we'll throw a few stock ideas in there as well.

Jim Cramer:

Well, talk about there was a great upgrade today of price target risk for Weyerhaeuser and this WY is probably part of our central thesis that the consumer is doing better. And I was listening to Byron Wien, an old friend of mine talk about how bad the S&P is going to do today, and we're stock pickers. I don't really care about how bad the S&P is going to be first quarter, second quarter. You try to find transcendent themes and housing is a transcendent theme, whether it be with our regional banks or whether it be with Weyerhaeuser.

Stephanie Link:

Right. Housing and construction in general and one new position that we recently added to, that we put into the fund, is United Technologies because you get half of the revenues from construction, right, because of HVAC and all that and their Otis elevators and whatnot, and then you also do get the global aerospace, which is a little controversial right now because of the Boeing issue, but we did sell Boeing. We thought they were a little too much headline risk, but we still like that theme.

Jim Cramer:

Look, 8,900 orders for big aircraft, commercial business orders way up. Where am I getting these numbers from? From Klaus Kleinfields' mornings in the Alcoa call last night. You want to be levered to construction because construction is a function of architectural buildings. You want to be levered to the fact that housing starts keep going up. We had an affordability number that was fabulous. You want to be levered to China. There's United Technologies. Remember this is a company that makes elevators and if you're building buildings you're going to be in United Technologies. These are very good things. HVAC, you know, the heating, ventilation, air conditioning. And I like these themes because when the market goes down, they're not done. There are opportunities.

Stephanie Link:

# http://business-news.thestreet.com/the-news-herald is currently incorrect and needs to be changed # new code for http://business-news.thestreet.com/the-news-herald :: # The News-Herald (serving northern ohio) # home links to http://www.news-herald.com/