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What Now?

Tuesday, 22 Jan 2008 | 7:35 PM ET
Cramer's Long-Term View
When the market goes wild, you cannot hide under a rock, advises Mad Money host Jim Cramer.

The Fed’s emergency rate cut Tuesday no doubt changed the game for Wall Street. Instead of bracing for what Cramer said could have been a 1,000-point down day, money managers were looking for opportunities to profit.

But retail investors need a new playbook, too, especially the women who run their family portfolio. The strategies will be different, of course. NYSE traders have different goals than moms with kids headed to college. And that’s why Cramer used Mad Money’s first ever Ladies’ Night to lay out a plan for the women of Cramerica.

One of the main things that happened because of the Fed’s 75 basis-point cut is that the value of cash went down. That checking-account interest just won’t return what it was, Cramer pointed out. So as an investment, cash isn’t looking good versus inflation.

So what should be bought? Cramer still recommends investors play defense with stocks like Altria , Coca-Cola , Procter & Gamble and Allergan . But in addition to financials – and in that group, Cramer could only get behind Hudson City Bancorp today – retail is a sector that bounces back after a healthy rate cut.

Once rates start to have an impact, investors have to look at retail. Big institutions already are, and “I think you should, too,” Cramer said. He offered up TJX , owner of TJ Maxx and Marshall’s as the stock to own.



Jim's charitable trust owns Altria.

Questions for Cramer? madmoney@cnbc.com

Questions, comments, suggestions for the Mad Money website? madcap@cnbc.com

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