Bonds are supposed to be a low-risk, safe alternative to stocks, Cramer said on Wednesday. But with prices quickly collapsing, investors are now starting to pull their money out of the bond market for the first time in two years.
With bond prices falling, yet interest rates on them remain low, the "Mad Money" host suggests getting out of the bond market. He recommends taking your money out of bonds and investing in stocks instead. In particular, he likes names that pay "big, juicy" dividends that yield 4 percent or more. Unlike bonds, these kinds of stocks can make you money on your principal and make money by way of divided payments, as well.
"Buying high-quality stocks with large dividends and then reinvesting those dividends back into the stock is the single best, most time-tested way to make money in any market," he said.
Cramer picked his fave high-yielding stocks across five sectors. Learn which names he recommended by checking out the story here.
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