GO
Loading...

Cramer: Where Americans Are Spending

Some retailers predict a disappointing holiday season, pointing to a weakened consumer. But there’s little question that people are spending, Cramer said during Tuesday’s Stop Trading!, just not on traditional items.

“Americans are spending fortunes on phones,” the Mad Money host said, referring specifically to smartphones, “and that’s a real expenditure.”

The expectations of J.C. Penney , Target and others seem low, but Apple , Palm and Research in Motion may hold a different outlook. Cramer emphasized how important it was to realize that consumers aren’t as cash-strapped as they were a year ago.

So “stop freaking out about whether Target had a good quarter or not,” he said.

Cramer also recommended that investors buy Cloud Peak Energy’s IPO this week, calling it a “sleeper” deal. He likes the company’s prospects for two main reasons:

“Coal is here to stay,” Cramer said, “even with Obama.”

The US focus on clean coal is at least partly fulfilled with Cloud Peak, which mines in the Powder River Basin, an area known for its lower sulfur content. Plus, the coal lobby is plenty strong enough to hold sway in Washington, and that will keep the industry a priority for many politicians.

Also, Warren Buffett’s purchase of Burlington Northern Santa Fe was partly an endorsement of coal, a major US export that BNI will move to port. Cramer saw this as Buffett’s admission that the commodity “is going to be with us for a long time.” Especially Cloud Peak’s coal, because it's cleaner and both companies operate in some of the same areas.

“In Buffett we trust,” Cramer said. “Buy Cloud Peak.”

Call Cramer: 1-800-743-CNBC

Questions for Cramer? madmoney@cnbc.com

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

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.

Mad Money Moments

Cramer's New Book