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Mad Mail: Commodity Prices, Up or Down?

Jim: Last week, you became the only person to publicly and rightly recognize that the competition to oil (gasoline) is fuel-efficient cars, and ultimately in my view, the national power grid. I almost threw up my breakfast this morning watching a commodities manager on CNBC insist that oil prices are based on supplies and demand, and likely to rebound in early 2009. The price of oil is not about the supply and demand for oil per se, it's about competition… Jim, do everyone a favor and alert the farmers that they could see futures this spring at 1999 prices, and tell CNBC to quit having so-called commodity experts on your channel while I'm eating breakfast. You get my vote for the SEC post. --Dan

Cramer says: “I don’t like the managed commodity guys, by the way…I think that commodities are not going to lift. Our viewer, Dan, is probably right. I also say you should sell most of the [agriculture] stocks. They’re up again. If you need to buy a fertilizer, remember, it’s Terra Nitrogen. It has a good yield.”

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Jim: A big Arizona BOOYAH to ya... I think I got it now. If President-elect Obama's infrastructure stimulus program is approved, then construction workers can support stocks I have by driving Caterpillar tractors, eating lunch at McDonald's , having an Altria Group cigarette on coffee breaks, and later when taking their families to Disney World . Happy days may be here again! --Tim

Cramer says: “Tim, you’re a comedian…Caterpillar I like below $39. That’s where it will be an accidentally high yielder – 4 and change [percent]. McDonald’s, I’ve already professed love for that company. I would buy it at $55…and Altria, they committed to the dividend. At $15, that stock is a steal...”







Jim’s charitable trust owns Altria and McDonald’s.

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