Although the European economy is still depressed, lately Cramer has noticed a number of data points that suggest things are stabilizing.
"We've seen strong purchasing managers index numbers for manufacturing and non manufacturing, positive retail sales, solid auto sales, and in the last couple of weeks, German business morale came in at its highest level in two and a half years."
In addition, leaders have implemented big changes in monetary policy. For example, over the last several months the money supply over there has doubled versus last year.
"That doesn't mean we're going to see a turn in Europe overnight, but if a turn is coming, you need to get in before it happens, because if you wait until it's obvious, you'll be too late," said Cramer.
So how do you play Europe?
"I prefer the Vanguard MSCI Euro ETF, (TICKER:VGK)," said Cramer.
Cramer believes that China's economy has been in the process of bottoming for a while now, and thinks that a genuine turn could be at hand.
"We know the Chinese central bank has been aggressively providing capital injections to banks, last year they cut the reserve requirement ratio three times, and they cut interest rates twice," he said. "There could be more of those to come."
Also the latest Purchasing Managers Index data from China was better than expected, and many of the U.S. companies that do business in the People's Republic seem to be pricing in some stabilization.
What's the play?
"When it comes to China, I like the iShares FTSE China 25 (TICKER: FXI) which owns a basket of 25 of the highest quality Chinese companies out there," said Cramer.
Cramer is impressed by the gains in India's stock market last year. "In 2012, the Indian stock market had its biggest gain in three years," he said.
Also, India's central bank cut rates by half a percent back in April and there's a big upcoming monetary policy meeting on January 29th, where Goldman Sachs expects them to cut rates by another half a point. That too should drive India's economy.
In addition, India has a rising middle class and as more people achieve affluence the demand for food, housing, autos, materials for infrastructure, technology, medicine and more should blossom exponentially.
All told, Cramer sees opportunity.
The best way to play it?
"Go with the iShares S&P India Nifty 50 Index Fund, (TICKER:INDY), said Cramer.
"Mexico has become a better place to invest now that all the cartel related violence seems to be dying down," said Cramer.
"If you believe in a Mexico's resurgence, go with the iShares MSCI Mexico Investible Market Index (TICKER:EWW), said Cramer.
"If you'd prefer to play Brazil, which seems to be on the mend—my favorite Brazilian ETF is the EWZ," said Cramer.
What's the bottom line?
"For 2013 the investing watchword is anywhere but here," said Cramer. "You need to get some international diversification, given the political gridlock that's strangling our economy. Japan, Europe, China, India, Latin America—I think they could all be better places to invest for the next year than the United States."
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