Cramer: Where to stash cash if rates go up in September

When Janet Yellen speaks on Friday, Jim Cramer thinks she could make a case for a strong economy that is ready for multiple rate hikes.

"I bet a small tightening will turn out to be a buying opportunity, even as there are always weak-handed traders who sell on any rate increase," the "Mad Money" host said.

When Cramer listened to the stellar Toll Brothers earnings conference call on Tuesday, it was clear to him why the housing market is doing so well. Toll Brothers dominates the high-end real estate market, building homes that average $843,000.

The company bought back approximately 7 percent of its shares in the first nine months of the fiscal year, but what really impressed Cramer was the geographical breadth of its strength. It managed to thrive in markets like Denver and Dallas, even though they were supposed to be hurt by slumping oil prices.

Cash dollars
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"Remember that these kinds of stocks are logical places to go, if indeed, a September move is back on the table." -Jim Cramer

"You have to remember … housing punches above its weight. Meaning, when housing is strong it leads to all sorts of good things for the economy, including the desire to spend money improving your house in order to augment its worth," Cramer said.

It was the combination of nationwide home price appreciation and consistent monthly gains that catapulted Toll Brothers' stock up almost 10 percent on Monday and Tuesday.

This was important, Cramer said, because until Toll Brothers reported there was a perception that the high-end home business was becoming weaker. Therefore, many assumed that home appreciation hit a ceiling and housing had peaked.

Stellar earnings from retail companies related to housing told Cramer that this theme is here to stay. Strength in Home Depot could mean good things for companies like Whirlpool, Stanley Black & Decker, Masco, PPG, Sherwin-Williams and any other retailer with goods that fill peoples' homes.

However, Cramer emphasized that if Yellen does make a case for multiple rate hikes, investors need to remember that the trends driving the nationwide gains — like strong employment and loosening credit — won't be crushed by a quarter-point gain.

"Keep this steady flow of good news in mind as everyone else frets about what Janet Yellen has to say on Friday, and remember that these kinds of stocks are logical places to go, if indeed, a September move is back on the table."

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