Cramer Last Night -- Tonight Actually

Tonight Cramer recommended 20% of one's stock portfolio be invested in foreign stocks because of what he sees as the impending falling dollar. If so, that puts him in the Swensen camp which now limits American stocks and bonds to 15% of ones portfolio, I believe.

Monday's night's show highlights: Cramer's New Foreign Legion Picks... Buy CPL and CIG!

Monday, August 3, 2009


Jim:
If you think that our nation is going down the wrong course… or you are just sick of hearing about how bad things are here… and tired of watching America get pants-ed by none other than the ChiComms… it is time for you to take an investing vacation over seas… tonight I am creating "the Mad Money foreign legion"… That is right, we are going traveling… and every night this week we will be enlisting new stocks… because right now I think that it is just irresponsible not to have some international exposure in your portfolio… why… we need to add some foreign stocks to the mix as insurance against the dollar getting weaker… something that I believe will happen… or at least inflation coming our way… something that I am less scared of because of Cramer fave Ben Bernanke...
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But just because I think that is less scary… that does not mean that you should not have some protection from it… where can we find more security… not just foreign stocks, but foreign dividend payers… only the best companies can be admitted to Cramer’s foreign legion… and just like at Fort Zimmerton, in Cramer fave “Beau Geste”… every stock dead or alive must do its part to make you money… you know how much we love high yielders on this show… and that goes just as much for companies overseas as home grown ones.We ran a screen to start… that means that we looked at all of the stocks that we could… what was our criteria… we were looking for ADR’s, American Depository Receipts, stocks that trade here on the New York Stock Exchange and the Nasdaq… and we wanted them with market capitalization over a billion dollars… and yields over 3%… then I whittled down the list further… keeping only companies where I liked the fundamentals… the results… we will unveil them throughout the week as we create a foreign diversified dividend portfolio… I would count putting 20% of your portfolio in foreign stocks as protection against weakness in the United States… and a recognition that we are simply no longer in control of our destiny… as much as we once were… because of our massive budget deficit, our low growth, and yes our potentially higher tax regime. The first area that I like…Brazil… Brazilian utilities… where I found not just one, but two stocks that I believe are worth owning for some high yielding international exposure right now… regardless of what happens with the Brazilian economy… this quickly developing nation is going to need a lot of power… that makes Brazilian utilities a stable source of revenue and cash… allowing them to pay solid dividends… that is what we want… and at the same time having more growth than any American utility that I could find… including Dominion Resources Inc. (D), Consolidated Edison Inc. (ED), including Exelon Corp. (EXC)… plus they are linked to Brazilian fundamentals… a weaker dollar means a stronger Brazilian real… which leads to higher prices for Brazilian ADR’s, just because the currency translation… hey, how about some layman terms… it means that the business is only so-so for these Brazilian things that I am going to highlight… as long as the dollar keeps getting weaker, these companies could go higher...
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Read all of Monday night's complete recap




Lightning Round Picks:

Carnival (CCL)Jim: You know... it is okay… I cannot rave about it… why can’t I rave about it, because it is up a lot… it is certainly doing better than the other one... Royal Caribbean… I am not going to get behind Carnival when I can recommend a much more stable situation… one that I recommend in Stay Mad For Life where you buy one share for a kid… Disney (DIS)… Disney, what a great franchise… that stock holds up well.







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