Cramer: The 1 Thing Investors Need to Own Now

[mick silver]

This is a scary, chaotic environment and in moments of fear and chaos, the one thing you need to own is gold," Cramer said Monday. "which is why the precious metal has been soaring of late, hitting new highs again today and going out above $1,700 an ounce (http://www.cnbc.com/id/44053673/)."
When it comes to gold [GCCV1 1738.70 http://media.cnbc.com/i/CNBC/CNBC_Images/componentbacks/watchlist_up.gif 25.50 (+1.49%) http://media.cnbc.com/i/CNBC/CNBC_Images/backgrounds/realtime_icon.gif] (http://data.cnbc.com/quotes/GCCV1) , Cramer favors the GLD [GLD 167.119 http://media.cnbc.com/i/CNBC/CNBC_Images/componentbacks/watchlist_up.gif 5.369 (+3.32%) http://media.cnbc.com/i/CNBC/CNBC_Images/backgrounds/realtime_icon.gif] (http://data.cnbc.com/quotes/GLD) exchange-traded fund. He calls it the most convenient, least risky way to own the precious metal. Given the strength of commodity and considering how few companies are doing well right now, he thinks it might be time to consider owning a gold miner. The miners aren't direct plays on gold, though, because they are companies that can hit all kinds of speed bumps.
Goldcorp [GG 46.44 http://media.cnbc.com/i/CNBC/CNBC_Images/componentbacks/watchlist_up.gif 0.10 (+0.22%) http://media.cnbc.com/i/CNBC/CNBC_Images/backgrounds/realtime_icon.gif] (http://data.cnbc.com/quotes/GG) has been Cramer's fave gold producer because it's one of the lowest coast players with mines around the world. It has a great track record and solid production growth. When it last reported earnings, though, it had a lot of things go wrong. The company got hit with a major forest fire in Northwest Ontario, Canada and suffered too much rain in the Dominican Republic. Flooding of the Mississippi River caused a cyanide shortage and there were production issues at its Penasquito mine in Mexico. All of these things, Cramer said, caused the company to lower its outlook for 2011.
The "Mad Money" host wanted to get the latest from Goldcorp, so he invited CEO Charles Jeannes onto the program. Check back soon to see the complete conversation.

Call Cramer: 1-800-743-CNBC

[mick silver]

what a bag of shit ..........

[mamboni]

what a bag of shit ..........

Aw hell! Talk about contrarian indicator! If we sell gold, where do we run to?

[Spectrism]

No, Cramer is not telling you to buy gold. He is saying to buy paper and pretend you are buying gold.

[Twisted Titan]

Aw hell! Talk about contrarian indicator! If we sell gold, where do we run to?

In to the jaws of the Zionist Wolf.

[mick silver]

we have no place left to hide

[JDRock]

Aw hell! Talk about contrarian indicator! If we sell gold, where do we run to?

Bout time you got your lazy ass back here.....the sheennies have been running amok!
rumor has it agememnon/halo/jp is back as joeking....

[mamboni]

Bout time you got your lazy ass back here.....the sheennies have been running amok!
rumor has it agememnon/halo/jp is back as joeking....

'Strange that I have not [felt their presence]. I hope your feelings are clear on this matter Lord Rockenfeller.'

The schwartz is strong with him. The offshoot of halo/juristic person must not become a trolli.

[JDRock]

i fell asleep in your waiting room reading 3 year old national geographics bwaaaha i thought you'd have guns and ammo!

[LuckyStrike]

I'm considering a name change for Cramer. From Jim "Buy Bear Stearns" Cramer, to Jim "Buy BAC" Cramer

Note that BAC is down over 50% from the writing of this article.


Published: Thursday, 6 Jan 2011 | 6:09 PM ET (http://anonym.to/?http://www.zerohedge.com/news/date-january-10-2011-source-jim-cramer-title-10-reasons-buy-bank-america)

Investors who want to bank on America’s return to greatness, Cramer said during Thursday’s “Mad Money,” should buy Bank of America.

He believes that job growth will return. He believes in stabilizing and then climbing home prices. He believes in even a rising standard of living and the inevitable return of investors to the market. Put simply, he’s bullish on America. And if you are, too, he thinks Bank of America is the way to play it.

Here are 10 reasons why you should get on board with Cramer:

Look at BAC’s chart going back to January 2007. Cramer said he’d heard more negativity about the bank and more downgrades of the stock between its move up to $14 from $12 than during its decline to $3 from $50. “This chart is screaming, ‘Buy me! Buy me! Buy me!’” Cramer said, “yet the bears are growling that Bank of America is the most dangerous bank to own in the world.”

Point two is directly related to point one in that BAC is not dangerous at all, Cramer said. The bank is well capitalized. So much so that there’s no need for it to raise more money. Certainly in what Cramer described as “a world full of dangerous banks,” Bank of America does not rank among them.

Reason three is the fact that Bank of America is about to reinstate its dividend, Cramer said. Investors seemed to love the stock until the dividend was cut, and now they hate BAC when the payout’s coming back? Cramer doesn’t get it, especially when you consider capital the bank is sitting on. He thinks that means dividend boosts are on the way.

Then there’s the huge market share that Bank of America captured during the downturn. The company now controls, thanks in part to the addition of Countrywide Financial, 20 percent of the mortgage market. That should translate into a huge windfall once the housing market improves.

Speaking of housing, Cramer said Bank of America owns the most houses in the U.S. Admittedly, that was a result of some pretty bad underwriting. Regardless, though, this so-called shadow inventory will turn into a boon in 2011 as job growth gives rise to housing demand, and BofA serves as home supplier to the nation.

Reason number six is Ben Bernanke, who wants American banks strong and healthy. By keeping the interest rate that banks pay you for your deposits low, Bernanke has allowed Bank of America and others to make more from the interest rate they charge for loans. And when you factor in this company’s huge deposit base, Cramer said, BAC makes money “simply by turning the lights on everyday.”

Merrill Lynch, meanwhile, offers what Cramer called “the most powerful network of high-net-worth advisors in the country,” which is perfect now that investors look ready to leave bonds and move back into stocks. And unlike Countrywide, Merrill’s reputation was never tarnished.

Number eight here is jobs. Steady employment leads to increased credit and borrowing, and that means more profits for Bank of America. Cramer said he almost hopes that Friday’s job number will be weak just so investors can get into BAC on a dip, because the employment trend in America is headed in the right direction.

And don’t forget that the Republicans now control the House of Representatives. So say hello to a hands-off approach to regulation, regardless of the reform bill that was passed this year. Of course, consumers will be paying higher fees for their checking accounts, but that’s some great no-risk income for the banks.

Finally, the company’s put-back mortgage exposure to Fannie Mae and Freddie Mac has turned out to be miniscule compared to what the bears thought. “And now that that risk is taken off the table,” Cramer said, “this is big.”

[willie pete]

Cramer is smokin' meth again.....

[platinumdude]

The number 1 thing that anyone needs to own right now is food.

[mick silver]

Cramer is smokin' meth again.....
you mean he stop .

[mick silver]

i also think food will be the best hold . dam if it was to get real bad alot of stuff we buy now will not be there . today i am heading to see a guy about some food . i seen some were we dont have food in stored like we did 20 years back . and i would say the food fema holding not for the small people