Tuesday, September 30, 2014

Jim Cramer's 'Mad Money' Recap: How to Invest in a Slowing World Economy

Search Jim Cramer's "Mad Money" trading recommendations using our exclusive "Mad Money" Stock Screener. NEW YORK (TheStreet) -- Have the economies of the world hit their peak? Jim Cramer wondered onaMad MoneyaTuesday. The world in indeed slowing, Cramer admitted, but that doesn't mean that all stocks must follow suit. For proof that the world is slowing, investors just need to look at economically sensitive commodities like iron, copper, steel and oil. It's certainly true that oil prices are falling because the U.S. is poised to eclipse Saudi Arabia as the world's largest oil producer, but oil prices have also been falling from weakening demand. Must Read: 10 Stocks Carl Icahn Loves in 2014 Ford also confirmed things are slowing when it reported its earnings. Not only are sales weak in Europe and South America, but margins here in the U.S. are also slipping, signaling a peak may indeed be at hand. Housing doesn't look any better, Cramer admitted. Home prices appear to be peaking as well. With the U.S. dollar at its highest level in four years, Cramer said the aerospace cycle may also be peaking. Then there are bond prices. Surely they're close to peaking now that the Federal Reserve has stopped its bond buying. Must Read: Why Apple Pay May Have Finally Convinced eBay to Spin Off PayPal So should investors sell everything and go home? Cramer said of course not. The industrials and the cyclical stocks must come down, but for those companies that benefit from lower commodity prices -- think restaurants, retail and apparel -- those stocks can still head higher. To watch replays of Cramer's video segments, visit the Mad Money page on CNBC. To sign up for Jim Cramer's free Booyah! newsletter with all of his latest articles and videos please click here. -- Written by Scott Rutt in Washington, D.C. To email Scott about this article, click here: Scott Rutt Follow Scott on Twitter @ScottRutt or get updates on Facebook, ScottRuttDC


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