One of Jim Cramer's favorite investment themes is the turnaround of the U.S. housing market, which he currently recommends investors play through shares of mortgage insurer Radian Group, but only on a speculative basis.
"The mortgage insurance business was in trouble for years for the very same reason that it's coming back with a vengeance right now: housing," the "Mad Money" host said Friday. "When the housing market was in free fall, when no one was buying new homes and foreclosures were everywhere, the mortgage insurance stocks got killed. This entire industry was left for dead. … Now that the housing market is coming back, the mortgage insurers that survived, like Radian, are coming right back with it."