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Cramer: Don’t Focus on the Wrong Things

Although stocks extended their gains in the final hour of trading to close near session highs Monday, Jim Cramer complained "few seem to care about the rally and so many dismiss it outright."

"We're looking for breakthroughs in all the wrong places, and we're worried about all the wrong issues, " Cramer said. "It's why there's such condescension toward the buyers and such contempt for the whole advance, even as we close in on all-time highs."

In turn, the "Mad Money " host sought to address two "amazing ironies" plaguing today's market. To start, Cramer noted technology stocks are continually the subject of discussion. Meanwhile, if Congress does nothing and the United States plunges off the "fiscal cliff" in three months, taxes would rise for 90 percent of Americans due to automatic increases in income and payroll taxes and other financial shocks, leading pundits to ask whether it's really worth owning stocks at all right now.

(See: Forget 'Fiscal Cliff, ' Add Risk: Barclays )

While the possibility of the "fiscal cliff" does warrant some legitimate concerns, Cramer downplayed the possible effect on the consumer. After all, retail sales rose in September, according to the Commerce Department. In turn, Wal-Mart Stores was able to hit an all-time high while retailers Michael Kors, PVH, Ralph Lauren, VF Corp continue to push higher. Investors who sat out the market on fears of the "fiscal cliff" missed out on these big gains, Cramer said.

When it comes to tech stocks, many pundits complain the group has produced a lackluster performance lately, to say the least, but Cramer isn't too surprised. After all, he noted the sector hasn't introduced any innovative products lately, which would send the group higher. He also noted that most tech stocks don't pay a dividend.

(Related: Cramer's Top Dividend Stocks 2012 )

"I don't want you to bottom fish in the Dells or Hewlett-Packards, the Intels or the Microsofts or the Nokias and Research in Motions, without having some thesis of genuine progress or real innovation, " Cramer said. "I would rather have you in something cheap like the banks and the retailers with good dividends and real opportunities, like the drug stocks and yes, even after this move."

When it comes to drug stocks, Cramer currently prefers Abbott Laboratories and Eli Lilly, which both pay juicy dividend yields.

—Reuters contributed to this report


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