Stocks that Work Despite a Vanishing Middle Class

Friday, 17 Jun 2011 | 6:54 PM ET

Picture, if you will, a barbell.

Cramer on Dichotomy in the Markets
The divide between high-end and low-end customers is becoming more defined, says Mad Money host Jim Cramer.

Well, that's just what Cramer on Friday said the U.S. economy has morphed into, or at least figuratively.

"The high end is on fire, the ultra low end is also going great guns, but everything and everyone in the middle is getting squeezed," he explained.

Wealthier Americans are spending more while the U.S.'s middle class dwindles away, Cramer said. To him, it's a disturbing trend. But as always, he's just here to help make you some money. (Read More: The Vanishing Middle Class)

So what's the best way to play this trend?

On Wednesday, Cramer addressed generic brand companies and on Thursday, he highlighted do-it-yourself auto repair retailers. Just as people are looking to save money with house brand products, they are hoping to cut costs by doing their own car repairs. (Read More: Cramer's Top Auto Parts Retailers)

Cramer turned his attention to retail on Friday, which he called the most obvious trade on this trend. With high unemployment and inflation, people are looking to save money by shopping at dollar stores. He likes Family Dollar and Dollar General in particular.

Being as the luxury consumer is "spending like there's no tomorrow," Cramer recommends Saks and Macy's .

Call Cramer: 1-800-743-CNBC

Questions for Cramer? madmoney@cnbc.com

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

  Price   Change %Change

Contact Mad Money

  • Showtimes

    Monday - Friday 6p ET
  • 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.