Use the rally off Thursday’s 30-year Treasury auction to take profits on bonds, Cramer told viewers during “Stop Trading.” Then take that money and buy companies with high payouts.
“We know that it was down the worst that it has been in ages,” Cramer said of the bond market. “So the bounce is a great opportunity to lighten up on bonds and switch into higher-producing equities.”
Which stocks did he have in mind? Well, Cramer returned to a group he has liked for some time, the master limited partnerships, where he recommended Linn Energy and Kinder Morgan Energy Partners . He likes MarkWest Energy as well, which enjoys some of the same benefits of an MLP, such as a tax shield on dividends and distributions.
“These have been really adept at raising their distribution each year,” Cramer said, “and also, of course, giving you that capital appreciation.”Page 1 of 3 | Next Page