Cramer Highlights
- Cramer said – Global capitalism just might be saved by Chinese communism.
- China’s economic stimulus plans could lead the whole world out of its financial woes.
- The Chinese are pulling out all of the stops by doing everything in their power to create jobs and save their economy.
- The reason why – Necessity.
- Chinese communists cannot afford the country’s economy to get any worse without risking widespread protests and civil unrest.
- To keep power, they must get the economy back on track fast.
- The Chinese have cut interest rates five times in efforts to stimulate growth.
- They have announced over $600 billion in stimulus packages, including a $40 billion telecom package to upgrade the country’s infrastructure.
- A plan which should be a win for QCOM* – Qualcomm.
- Why do these moves in China matter?
- Because the trend is the only bullish thesis our markets can rally around,said Cramer.
- This catalyst has resulted in a huge rotation out of names like MRK – Merck and MCD* – McDonald’s, and into names like BHP – BHP Billiton, JOYG – Joy Global, ETN* – Eaton and FCX* – Freeport McMoran.
- Cramer said, “The Chinese are giving us a reason to like the stocks that need a strong economy to work”.
Here’s the list of stocks from Cramer’s Mad Money Show for Tuesday, January 06, 2009.
Note: Dow stocks mentioned tonight: None tonight!
Thumbs up for these stocks………….
CPRT – Copart Inc. $28.18
ECOL – American Ecology $20.09
HIG – Hartford Financial Services $19.68
TRV – The Travelers $43.17
WFC – Wells Fargo $14.86
Thumbs down for these stocks………..
GT – Goodyear Tire $7.51
ISIS – ISIS Pharmaceuticals $14.86
*A CHARITABLE TRUST STOCK.