GO
Loading...

Survivor, Wall Street Style

The market seems to be playing a vicious game of Survivor, Cramer said during Thursday’s Mad Money. Stocks in certain sectors, and sometimes entire sectors, are in danger of not making it off the island, so to speak.

Indeed, there are few winners, as the market cuts through industry after industry. So investors hoping to survive themselves have to know who those winners are. Enter Cramer. He highlighted the only sectors working right now.

First, though, the losers: Banks, such as Citigroup . Life insurers like Prudential . The mortgage insurers. Survivor’s home channel CBS and the rest of the media cohort, as well as the newspaper stocks. Everything autos and autos related. The shippers. Homebuilders like Lennar and the Whirlpools who supply them. Terra Nitrogen is agriculture’s best stock, but that’s because of the 10% dividend yield. The REITs are in trouble, and so is retail – except for Cramer favorites Wal-Mart , Costco and Amazon.com. And Wynnmight be the only surviving casino. Even the utilities are having trouble getting the money they need.

Investors need to sidestep that mess and buy the foods, the drugs, the techs, oil and gas, machinery, steel, rails, aerospace and gold.

Microsoft, et al, have strong balance sheets to get them through this downturn. People have to eat, so Heinz, Pepsi and Coke will survive. Colgate’s a winner, too. Cramer likes all the major pharmaceutical and biotech companies, and the health-care cost containment stocks.

Exxon’s a buy, as are almost all of the integrated oils. Cramer’s a bit worried about the drillers, he said, but most will make it. Overextended natural gas companies might be forced to merge, but he doesn’t expect that commodity’s $4 price to hold.

Steelmaker Nucor, industrial conglomerates 3M and United Technologies and all the gold miners – Agnico-Eagle especially – work, Cramer said. So do Verizon and AT&T, even though the stocks have performed poorly of late. And lastly, investors may want to pick up UPS or Fed Ex, but they should avoid the airlines and trucker stocks.

Plan on surviving this market? Then Cramer thinks you should form an alliance with these stocks. That first group doesn’t stand a chance.







Cramer's charitable trust owns Pepsi and Wal-Mart.

Questions for Cramer? madmoney@cnbc.com

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

Symbol
Price
 
Change
%Change
AEM
---
AMZN
---
C
---
CBS
---
CL
---
COST
---
FDX
---
HNZ
---
KO
---
LEN
---
MMM
---
MSFT
---
NUE
---
PEP
---
PRU
---
T
---
TNH
---
UPS
---
UTX
---
VZ
---
WHR
---
WMT
---
WYNN
---
XOM
---

Featured

Contact Mad Money

  • Showtimes

    U.S.
    Monday - Friday 6p ET
    Australia
    Saturday 8a, 1p, 7p SYD
    Sunday 12a, 1a, 8a, 7p SYD
    New Zealand
    Saturday 10a, 3p, 9p NZ
    Sunday 2a, 3a, 10a, 9p NZ
  • Jim Cramer is host of CNBC's "Mad Money" and co-anchor of the 9 a.m. ET hour of CNBC's "Squawk on the Street."

Mad Money Features

  • Grab the latest CNBC gear from the NBCUniversal Store!

  • Get a behind-the-scenes look at how Cramer formulates his investment advice. "Inside the Madness" is a column, which features e-mails and more with Cramer and his researcher Nicole Urken.

  • You’ve always wanted to hit the “Hallelujah!” button. Here’s your chance.