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Cramer Remix: Make no mistake, this move is bullish

It might seem hard to imagine, but Jim Cramer wouldn't be surprised if the bears declare the "end of the world" on Friday if Janet Yellen takes a hawkish tone when she speaks.

"If she even mentions putting a rate hike on the table in September, it is entirely possible we will be talking about how ugly next Monday will be, not unlike the down 1,000 point Monday a year ago," the "Mad Money" host said.

During this week last year, fear of a meltdown sent the Dow 2,000 points lower over the span of five days. It was a record-breaking event that had not occurred since the dark days of the Great Recession of 2008. Ultimately, the market bounced back within three months and the dip proved to be a buying opportunity.

It seemed to Cramer that investors are once again acting as if the world is about to end.

On Tuesday, new home sales data showed the strongest levels since 2007. The second-quarter earnings were remarkably good. The Nasdaq composite recently hit all-time highs, and many stocks continue to rise.

"It's almost like no one believes the move is real, even as the methodical, resilient way that this market has advanced is textbook bullish," Cramer said. "I offer no apologies about that judgment. In fact, I feel like if I don't point it out, nobody will."

Janet Yellen
Samuel Corum | Anadolu Agency | Getty Images
Janet Yellen

Cramer loves it when CEOs running a company put their money where their mouth is.

He has noticed the pattern that lately, many companies have announced large buybacks. Usually a buyback can be a signal that a company is attempting to shrink the number of shares available in order to create more attractive earnings per share growth — but Cramer thinks it is something else.

"To me, these buybacks make a statement. They're how a CEO lets you know that he is sick and tired of the market undervaluing his stock, and he's not going to take it anymore," Cramer said.

Nothing screams louder that a stock is undervalued like a giant repurchase program.

Cramer is also done worrying about a decline in retail.

"I am a big believer in skepticism, but it is possible to be too skeptical. Time and time again we have seen investors write off the American consumer … enough with the emotional rollercoaster," he said.

Second-quarter earnings produced strong numbers for many brick-and-mortar companies, which led Cramer to believe that the consumer never went away in the first place. Shoppers just became pickier about where they shop.

He turned to Bob Lang to take a look at the retail charts to figure out where these stocks could be headed. Lang is the founder of ExplosiveOptions.net and a colleague of Cramer's for RealMoney.com. Ultimately, Lang said the charts are showing that Nike and Nordstrom could have a lot more room to run.

"You've got my blessing to buy both of them because they are terrific companies. But honestly, the fact that even a laggard like the Gap can be a winner in this market tells you everything you need to know about the rotation back into retail," Cramer said.


Packaged food companies have also had a strong run this year, but with the possibility of a rate hike once again on the table, Cramer worries about the future of many high-yielding bond market alternative stocks like General Mills.

General Mills CEO Ken Powell has steered a 23 percent rise in the stock this year, partially helped by the expansion of its organic business and removing artificial coloring from all cereals. In an interview with Cramer on Tuesday, Powell explained how the packaged food company with barely any growth has roared so high this year.

"More than half of our consumers said they prefer not to have these artificial flavors and colors, and so we took them out. We took them out, and business got better. We were just listening to the consumer," Powell said.


Real estate investment trusts (REIT) were also on fire this year as investors flocked to stocks with consistent yields that could be alternatives to bonds.

EPR Properties owns entertainment, recreation and education-related real estate. This includes megaplex movie theaters, retail centers, ski parks, charter schools and even casinos. While the stock has pulled back approximately $5 from its highs in July, it has still produced a 35 percent return for the year.

Cramer spoke with the company's CEO Greg Silvers about the advantages that the company has as a REIT in the current market.

"I think for us it's really about being able to access this product, to grow a portfolio, to take advantage of a low interest environment, to capture spreads and deliver consistent durable dividends that are becoming more and more valuable in this environment," Silvers said.


In the Lightning Round, Cramer gave his take on a few caller favorite stocks:

Box: "You've got this thing with Aaron Levie [CEO], he's doing a good job. But it's a high growth stock and people want big earnings ... speculation buying I am allowing, because it does have good revenue growth."

US Steel: "No, we recommend only Nucor when we are in the steel group. That is a company that was built to last and doesn't have a debt problem and has good yield."