Skip navigation
MOST POPULAR RELATED TAGS
  • TOPICS
  • SECTORS
  • COMPANIES

MAD MONEY FEATURES

Podcasts PODCASTS
Watch the Lightning Round whenever and wherever you want.




Widget OFFICIAL MAD MONEY WIDGET
Grab this all-in-one application and get recaps of the show sent right to your desktop or blog.




Soundboard CRAMERS SOUNDBOARD
Admit it: You've always wanted to hit the "They
know nothing!" button. Here’s your chance.




Mad Money PhotosCHECK OUT OUR PHOTOS
Check out Cramer on set, back to school, behind the scenes and more.




ShopSHOP FOR MAD MERCHANDISE
Buy Cramer books, bobbleheads and other Mad Money merchandise.




Ringtones RING TONES
Pick up the phone! It's Cramer! New Mad Money sounds for your cell phone.




Mobile AlertTEXT MESSAGE ALERT
Mad Money's mobile. Get show highlights sent to your phone.







Text Size
Aug.25
3:12 PM ET
Tuesday, 25 Aug 2009
Cramer: 4 Ways to Play a Rebound in Housing

On Tuesday’s Stop Trading!, Cramer is rejoicing at the news that Ben Bernanke has been reappointed Chairman of the US Federal Reserve, although he’s not exactly thrilled with the selection of Denis Hughes as the Fed Chairman spot in New York. He also has four ways you can profit on his expected rebound in the housing market.

The Mad Money host was worried that the selection process was going to be “politicized” instead of selecting the right individual for the job. Fortunately, according to Cramer, Bernanke turned out to be the President’s choice saying, “he went for the high-end guy, the President Bush guy… the world loves Bernanke. He is a much loved figure.”

In the general market, Cramer has specifically been more optimistic on housing this summer and suggests four new, creative ways to play a housing rebound.  His pick is Weyerhaeuser [WY  Loading...      ()   ], based upon the notion that the economy is at the stage where lumber will rise in price, noting that Louisiana-Pacific [LPX  Loading...      ()   ]  tripled, saying that it is “not nearly the company Weyerhaeuser is.”

Another play Cramer sees on the housing rebound is Macy’s [M  Loading...      ()   ]. He notes that everything at Macy’s has been performing well, except for the big-ticket items like furniture, which stands to see a bump from a wave new home sales resulting from the rebound in the housing market. A rebound in this department could have significant effects on the stock price, suggests Cramer.

Yet another creative way to play the housing rebound is also quite a logical one, Sherwin-Williams [SHW  Loading...      ()   ] a stock, which Cramer notes, has been relatively strong anyway. “When you buy a new house, you throw a coat of paint on it, when you try to sell a house you put new paint on it,” he says, “paint also uses natural gas [US@NG.1  Loading...      ()   ], so you could also get a double-whammy there.”

Lastly, if you’re betting on a rebound in housing, you’ll want to own companies who own houses. Don’t look at the homebuilders, says Cramer, look at the big banks who own the mortgages and foreclosures, like Bank of America [BAC  Loading...      ()   ] and JPMorgan [JPM  Loading...      ()   ]. “They’ve got the inventory and suddenly it’s been marked down to extremes, particularly in the case of JPMorgan,” Cramer says, praising the company’s CEO, Jaime Dimon, for the company’s exceptional price structure in the area.

For Cramer’s full analysis in Tuesday’s Stop Trading!, check out the video!


Cramer’s Charitable trust owns Weyerhaeuser

Call Cramer: 1-800-743-CNBC

Questions for Cramer?

Questions, comments, suggestions for the Mad Money website?

© 2009 CNBC, Inc. All Rights Reserved

Tools:
PrintEmailAdd This share icon
Next Post
  • digg share
ADD COMMENTS
Remaining characters


Current DateTime: 10:38:02 25 Nov 2009
LinksList Documentid: 29778428

Current DateTime: 10:38:02 25 Nov 2009
LinksList Documentid: 29779196

Current DateTime: 10:38:03 25 Nov 2009
LinksList Documentid: 29779199

Current DateTime: 10:38:03 25 Nov 2009
LinksList Documentid: 29779198
  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