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Mad Mail: A Little Gunplay?

Jim: I have visited a few local gun shops over the past two weeks and they have been packed full of people buying. The owners say fear of stricter restrictions under an Obama/Democratic Congress and the need for protection in this tough economy are driving sales through the roof. They claim they can't keep product in stock, and are having trouble re-supplying due to the high demand (this goes for ammo as well). Is there a trade to be made here? --Joe

Cramer says: “I am going to say definitively that there isn’t.” Neither Smith & Wesson nor Olin, which has a Winchester business, works right now. “There are things that happen that are not investable, and that trend is one of them.”

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Jim: I understand the logic of investing in dividend-yielding stocks in the current environment. However, I don't understand why we as investors should try to pick individual stocks for good yields when we can spread the risk by purchasing a fund or exchange-traded fund for dividend yields…wouldn't that make more sense in terms of a high return with a diversified risk? --John

Cramer says: “…I, perhaps it’s hubris, believe that I can pick the best dividend-yielding stocks, and don’t want the ones I don’t like in the basket, which is why I am against that ETF strategy.”

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Jim: Thanks for all your hard work and wisdom. You are educating, comical and make learning how to work the stock market interesting. Can you give me some stocks in the energy and medical fields that will do well during Obama's presidency? Thanks and Booyah! --Greg in Tulsa

Cramer says:Tenet Healthcare as a speculative play could work. And TAN, the solar-energy ETF is worth consideration, but be cautious because that business is not working out economically right now. “This is not a presidency where I feel confident of recommending stocks on. Why? Because there are three months before this guy becomes president, and in the interim there’s nothing but hurt. Why play it now when you can play it then?”


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