When the Fed Tightens

Cont'd discussion about Jim Cramer's Real Money: Sane Investing in an Insane World, amended and updated in Jim Cramer's Mad Money: Watch TV, Get Rich.

FIRST FED TIGHTENING
GDP Growth 3% and rising.
Big Money expected to Buy smokestacks (machinery and equipment).

SECOND FED TIGHTENING
GDP Growth 3.5% and rising.
Big Money expected to Sell financials, housing, retailers, and auto.

GDP Growth 4% and rising.
Big Money expected to Buy metals and minerals.

GDP 5% and FALLING
Big Money expected to Sell paper and chemicals.

THIRD FED TIGHTENING
GDP growth 3.5% and falling
Big Money expected to Buy medicine and supermarkets.
Big Money expected to Sell techs.

FOURTH FED TIGHTENING
GDP growth 2.5% and falling.
Big Money expected to Sell non-BRIC (Brazil, Russia, India, China) smokestakes (machinery and equipment). E.g. MMM.



...cont'd tomorrow...

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