Skip navigation
MOST POPULAR RELATED TAGS
  • TOPICS
  • SECTORS
  • COMPANIES
View All Topics
Road Rules
Road Rules Video Gallery
          
Investing can be confusing. Luckily, Cramer has mapped out some road rules for all you Home Gamers trying to navigate the jungle that is Wall Street. Think of it as "Mad Money 101" –- some fundamental advice to keep in mind as you play the market. Whether you're a first time investor or a seasoned financier, it's always good to remember the basics.
Watch the Videos
Text Size
Nov.19
11:08 AM ET
Monday, 19 Nov 2007
Game Plan: More Bad News? Thank God.
Posted By:Tom Brennan

After Wells Fargo CEO John Stumpf said U.S. housing hadn’t been this bad since the Great Depression, it was hard to imagine things getting any worse. After all, that was coming from the number-one mortgage lender in the country and a bank without half the exposure to the subprime loans that hurt so many of its rivals.

But this was actually a good thing, Cramer said.

The Federal Reserve won’t act until things are dire, so that was just the doom and gloom the market needed. It’s never a question of if the Fed will intervene, it’s just a matter of when. So the bleak picture Stumpf painted might have been just enough to prod Chairman Ben Bernanke into action.

But in the meantime, clear out of Countrywide [CFC  Loading...      ()   ], Washington Mutual [WM  Loading...      ()   ], Downey Financial [DSL  Loading...      ()   ], E*Trade [ETFC  Loading...      ()   ], Standard Pacific [SPF  Loading...      ()   ], Pulte Homes [PHM  Loading...      ()   ], Centex [CTX  Loading...      ()   ], Beazer [BZH  Loading...      ()   ] or any of the mortgage lenders. If Stumpf was spot on, these stocks won’t work for a very long time, Cramer said.

Click for the rest of Friday's show

Instead, buy defensive stocks like Coca-Cola [KO  Loading...      ()   ], Altria [MO  Loading...      ()   ], Colgate-Palmolive [CL  Loading...      ()   ] and Clorox [CLX  Loading...      ()   ]. Even Avon [AVP  Loading...      ()   ] is great these days. And don't forget healthcare plays like Medco Health Solutions [MHS  Loading...      ()   ].

Hang tight, Homegamers. The worse the market gets, Cramer said, the brighter the future looks.

Questions for Cramer?

Questions, comments, suggestions for the Mad Money website?


Tools:
PrintEmailAdd This share icon
Next Post
Previous PostBack to Main Page
  • digg share
ADD COMMENTS
Remaining characters
MORE FROM CNBC
TOPIC : Mortgages
View All
Headlines
Posts
Video
TOPIC : Housing
View All
Headlines
Posts
Video
TOPIC : Stock Market
View All
Headlines
Posts
Video
SECTOR : Food and Beverage
View All
Headlines
Posts
Video
SECTOR : Personal and Household Goods
View All
Headlines
Posts
Video
SECTOR : Health Care
View All
Headlines
Posts
Video
COMPANY : Beazer Homes USA, Inc.
View All
Headlines
Posts
Video
COMPANY : Centex Corp
View All
Headlines
Posts
Video
COMPANY : Pulte Homes
View All
Headlines
Posts
Video


Current DateTime: 05:27:14 11 Nov 2009
LinksList Documentid: 29778429

Current DateTime: 03:37:26 11 Nov 2009
LinksList Documentid: 29778428

Current DateTime: 01:05:48 11 Nov 2009
LinksList Documentid: 29779196

Current DateTime: 06:57:57 11 Nov 2009
LinksList Documentid: 29779197

Current DateTime: 01:05:48 11 Nov 2009
LinksList Documentid: 29779200

Current DateTime: 06:57:57 11 Nov 2009
LinksList Documentid: 29779199

Current DateTime: 01:02:04 11 Nov 2009
LinksList Documentid: 29779198
CNBCCNBC
  Data is a real-time snapshot  *Data is delayed at least 15 minutes
Global Business and Financial News, Stock Quotes, and Market Data and Analysis

© 2009 CNBC, Inc.  All Rights Reserved.
A Division of NBC Universal
Thomson ReutersThomson Reuters