Trading that coin purse. Tonight im checking out the lifestyles of the rich and famous to find Luxury Brands that could be ready to run . Is coach ready to go from zero to hero . Dont move buzz mad money is coming up next. I know youre dying to find out who won the street fight, according to our twitterers out there. It was a tie. Oh so there might have to be a rematch down the line. Meantime, it is time for the final trade. Amazon call spreads. Bkers . If you dont believe the Samsung Galaxy is going to do well, you can short it by ewy. Grasso . Cog, capital oil and gas. Some of the best gas exposure and assets in the u. S. Karen . The mid kaput spreads to hedge portfolio. Happy 14th birthday, tim adam my. Happy birthday, amy lee. My sister. Im melissa lee, thank you for watching. Mad money starts right now. Im jim cramer, welcome to my world. You need to gelt in the game. Stearns is going to go out of business and hes nuts, theyre nuts, they know nothing. I always like to say there is a bull market somewhere. Mad money, you cant afford to miss it. Hey, im cramer. Welcome to mad money to cramerica. Other people want to make friends, im trying to save you a little money. My job, not just to entertain but to educate. Call 1800743cnbc. After the tenth straight up day in the market, seemingly endless winning streak, the day where the dow gained 84 points, s p,. 6 , nasdaq,. 43 . We need to take about something that a lot of people are taking issue, the feds role in the stock market rally. We are going to make it clear, interesting and action oriented. Here is what well do. No denying that the fed is creating an environment where companies can do well and stocks can do higher. We know the fed has allowed individuals and corporations to refinance and a gigantic part of what made it possible for people to buy stocks and buy homes and companies to buy stock and pay bigger dividends, keeping money easy, the fed has encouraged the buying of equities, in part as bond market substitutes, and dividend paying stocks yield more than treasuries, and the tax treatment remains superior and far more bountiful than bond market, interest payments, cow upons taxed at a much higher income rate and created a very helpful investment climate. No matter what critics say, unless unemployment makes a quantum leap to 6. 5 , yes, ben bernanke is the father of the bull market. That is for certain. And the fed has been incredibly important impetus behind the giant move. Now, there are tons of pessimists out there who believe that because the fed created this environment, the fed is doomed to destroy it. The moment they take away the punch bowl and start tightening, they believe i think thats wrong. And more important, i think you are getting ahead of yourself if thats what are you worried about. And people have been worried for a year now. Just because bernanke made the bull market, doesnt mean its a pitiful helpful orphan, the bull can stand on its own four legs, and even if it wants on its own now, i expect bernanke wont tighten until we are at a place we will be able to stand and it wont crush the stack market. The crucial point, thats not where we are right now, even as you hear it being asked and talked about endlessly. Not where we are right now. The last five years i have told you over and over again, you have to get out of bonds and into stocks for as long as this period lasts. In other words, as long as the fed is being benign and said lets there be profits. I think you should make as much money as possible. While it lasts, i think you would be nuts not to try and benefit from it. Im a huge believer you wont necessarily catch the top of any market. But that, if you are if you decide to be in and you decide to be disciplined you can get out with some very big winnings after it starts going down. If you sit things out because one day at some undefined point down the road, are you committing the ultimate sin of passing up what might be a once in a lifetime opportunity to make money. Plus, many of the companies are doing well today are not expensive on earnings basis, even unaided by the lakt of serious competition. To me, the risks of a prec precipitous selloff are much lower if or when it does occur and makes it more important than this rally not be blindly dismissed by bearish statisticians who are saying that danger links around every corner. High quality, High Growth Companies that sell 13 times earnings or less, financials, cut tech on this, and the risk that we could sell off if the fed tightens overnight isnt as miserably frightening as they sold off like the 87 crash. The Underlying Companies regarding much more slowly then, sure. Yeah, i know, ive got to tell you if we moved up to 7 to 10 higher from here, thats a different story. Up 7 to 10 higher, i would say i dont like the odds. I think there is a lot of selling to do. Here is the rub. If we were to rally 7 to 10 here and the fed tightened quickly, we may not even go down 7 when it happens. Stocks will do better than bonds. The real enemy in that scenario, and i say the only people who dont need to be in stocks are the people who dont invest under any circumstances, against their charter or they dont believe in it, or ones that were so rich, they dont need to risk anything and tell you not to. They only need to get rich once. And these are the most vociferous critics. Can they give any credit to Corporate America . They have played in big hand in the rally too. We have seen the social contract in terms of huge buybacks and dividend boosts, bernanke provided the opportunity but didnt provide the smart, the execution, just created a back drop that allows companies with big businesses to be veil. You never would have bothered to buy stocks if you believed from the get go this had to end and end in tears. Would you have avoided stocks the whole way which is what these people i mean, thats what they accomplish. You the whole way or from any level, you heard the jeremiahs how the fed could pull the rug out at any minute. Im angry this morning. Getting angry about this. And im steamed, you know why . I would like just once, i would like to hear the fed fare fearing bears to say, look, i acknowledge my view would have kept out of stocks for the last 1,000, 2,000, 3,000, 4,000 or 5,000 dow points and now i doubt even if bernanke leaves right now that we will give up those points, but die think it should be on the radar screen at some point. Would that be too much to ask . Too much for someone to admit . The real irony is if the economy does get better, companies will do better and stocks can do better. But bonds, they will almost always do worse. Always. I cant think of a single situation where you could own bonds right now, regardless of your age or risk profile. Owning a dangerous longterm bond, with that budget deficit we have, come on. I have you buy that stuff at 130 versus 100, and first okay, johnson johnson, common stock with good dividend, and it makes no sense to me, bernanke bashers tell people to sell their bonds. Get everyone to sell longterm bond funds, but unless they wise up, these bears will be the enemy of your personal wealth. They have kept you from taking that opportunity and they have no humility and no remorse. Nothing. No gain at all. They simply dont think this rally counts. They dont think it matters. And that you couldnt have made any money, and they think that these gains are ill gotten. Here is my bottom line. Ill gotten gains are gains that are stolen exappropriated or booted. These stock markets gains are totally legitimate, accepted at the bank and at fine Retail Stores everywhere. So all we acknowledge this period of bountiful profits will compton an end, not enough of a reason to keep you away from the market as long as it lasts. When things go gadd bad, believe me, stocks will seem defensive, and the bonds, as long as things are good, well let you say stocks have a lot more upside. Thats right, traditionally defensive, the bond funds could be lethal what is risky, highquality stocks with good dividends after this run make the most sense to own. Margaret in michigan. Margaret. Good day, mr. Cramer. Thank you so much for your help to the listeners. Thank you. Caller booyah to you and a boohoo from me. Whats the matter . Caller ive got cliffs natural resources. I bought last year in the mid 40s and its way down. I am a longterm investor and if you say hang on, i will. I got you. Look, i was talking to this with two other investment professionals. Look, they raised capital, the Balance Sheet is better. You need china goes up for a couple of days and the rally will stock 15 and well relook at it, margaret, and then make the move to go. Not now, i dont want to do it, and the bears have no remorse whatsoever about keeping you you out of this rally. I got to keep you in, get you out of those bond funds, thats whats going to crush you, the bonds, not the stocks. Mad money will be right back. Coming up, housing high . Investors searching for more ways to play the redhot Housing Market and tonight, cramer has an open house. Time for you to move in to shares of mortgage insurer r radiant group . We conduct an inspection with the ceo next. Later, in the bag . Cramer tuning in to the lifestyles of the rich and famous to find which luxury names could be boo buoyed by their bucks. That coach purse may cost a pretty penny, but could an investment in the brand pay you back with interest . Jim tries the story on for size. Plus, the suite life . Netsuite helps companies tie together their operations online, using Cloud Computing infrastructure. Could its stock lead your portfolio higher . Or will competitors roll in and steal its thunders. Dont miss cramers exclusive with its ceo. All coming up on mad money. Dont miss a second of mad money, follow jimcramer, madtweets. Madmoney apt cnbc. Com or give us a call at 1800743cnbc. Miss something . Head to madmoney. Cnbc. Com. Accelerrental. At a Hertz Expressrent kiosk, you can rent a car without a reservation. And without a line. Now thats a fast car. Its just another way youll be traveling at the speed of hertz. Transit fares as in the 37 billion transit fares we help collect each year. No . Oh, right. Youre thinking of the 1. 6 million daily Customer Care interactions xerox handles. Or the 900 Million Health insurance claims we process. So, its no surprise to you that companies depend on todays xerox for services that simplify how work gets done. Which is. Pretty much what weve always stood for. With xerox, youre ready real business. The the Housing Market, roaring back and taking the mortgage Insurance Industry with it. The mortgage insurance names were some of the most despised stocks when housing was imploded and stayed hou eed hated when h was flat lining. Now that housing is getting stronger, morning insurance stocks are rocketing higher. Three weeks ago, i recommended radiant. Number one writer of private mortgage insurance as a way to speculate on housing. Since then, company has become a lot less speculative and more solid. Radian announced a gigantic secondary offer. Wasnt that big when they announced it. People wanted in so badly, it da dramatically improved the Balance Sheet. The stock went on to close at 8. 45. That shows you demand. Fast forward today, radian, now 10. 34, up 31 where i got behind it less than a month ago. Writing tons of profitable new policies, and the end of the year, posted 2009 business will represent 75 of exposure. All the good stuff. The fha, radians biggest competition, has repeatedly raised prices says and plan on reducing market share to the old average of 8 to 10 . The fha giving the business away. Lets check in approximate with s. A. Ibrahim, the ceo of radian group to find out more about his company and where its headed. Welcome to mad money. Have a seat. Good to be here. First, a little counterintuitive thing, most when people see a big secondary, big offering, think its bad. Why did people realize and when you told them it was good that you raised money . Didnt hurt the stock . Why was it not surprising the stock went up . Funny you commented on that before. The most interesting thing was when we were in the middle of raising capital, the meeting with the very large investor and said he had seen thousands of offerings and surprised that on the day they have to be announced, the stock actually went up. But the reason for that is people are betting on housing coming back, all the indicators positive in housing, and some of the big names that were behind taking positions when housing imploded are now taking positions on housing coming back. Right. And i think whats important for people to recognize is that this business had a quick rebirth. A lot of people feel that you are just saddled with everything from 2005 to 2008. This business rolls off. Yes, it does. Velocity is fast, particularly when the Mortgage Market is active. And initially down turn, the Mortgage Market was not active, with the lower rates we saw, a lot of refi business came in, and the housing recovery, we are starting to see purchase business come back. At the same time, fha been trying to hog the market. And i listened to the guy who runs it. I dont think they want to compete with you anymore . The fha, if its aligned with us, as is the rest of washington and saying that private capital should play a bigger role and government capital can stale back, the gses, we in the market, we stand to benefit from that happening. You are the huge winner here. There are some people, naysayers, barrons said you were a house of cards. Like at this way. A competitor just settled a claim, and a lot of people thought they would pay tens of thousands of dollars per claims. Settled 5,000 per claim versus 70,000 that country wide was asserting. I have to believe you wont have to play anywhere near the naysayers say you have to pay. Jim, i cant comment on any negotiations and discussions we are having, suffice it to say that we all look at the same factors and all are trying to get legacy behind us, and in our case, we have also focused very heavily on writing new business to the point where the new business that we have written since 2009, very profitable, high quality business, will shortly make up more than half of our book. Okay. By the end of the year, more than that, but let me just let me go back on this a little bit. How about this . You look at what competitor ended up having to pay, and you look at what youre reserving it would be substantially better if you ended up paying what your competitor did than what some people think you may end up paying. Would you be happy if what they thought you could get . As much as i would like to answer the question, its apples and oranges because of types of claims it would be very positive. People think are you underreserved. In light of common practice happening away you from, you do not seem like are you underreserved at all . I dont believe some of in fact, im required to reserve the right way and, in fact, there are two people who look over everything we is he serve. An independent third party that is an independent accident warriwar i ial firm to come and write on top of us and also outside audit firm, they independently actuarily calculate our reserves. The refinance business has been good. Instead we build 1 million homes, the stretch. The number im using on mad money, 1. 2 million homes. What would that mean for your business if you kept market share consistent for additional homes. Much as we like the refinance business, we love the purchase business. Because the purchase borrowers have a higher propensity to get mortgage insurance, particularly if you look at the demographics, first time home buyers have been sitting on the sideline. First time home buyers are concerned, particularly if they think home prices are faug. And typically they dont have enough down payment so they acquire mortgage insurance. Thats exactly where you fit in. Number one player in the business with the government trying to get out. Because the government is under pressure from congress. And radian rdm will be the winner. S. A. Ibrahim, we like it in the high sevens, even more at ten. Why . More statutory capital. Rdm rdn is going higher. After the break, try to make you more money. Coming up, in the bag . Cramer tuning in to the lifestyles of the rich and famous to find out which luxury names could be buoyed by their bucks. The coach purse may cost a pretty penny, but could an investment in the brand pay you back with interest . Jim tries the story on for size. [ male announcer ] ive seen incredible things. Otherworldly things. But there are some things ive never seen before. This ge jet engine can understand 5,000 data samples per second. Which is good for business. Because planes use less fuel, spend less time on the ground and more time in the air. Suddenly, faraway places dont seem so. Far away. In this in this seemingly unbeatable market, that keeps zooming higher, were constantly bargain hunting for stocks that represent real value. Stocks you can buy right now, right here, without feeling like a total chump when you are doing it. Tonight, i want to talk to you about coach, coh. The highend Handbag Company that says isnt that much high end anymore. We added it to the great gatsby index. We use it as a barometer to track hout rich are spending. I got to tell you, coach, it has been a real dog lately. But i think we would be approaching every dog has its day moments. The stock has been absolutely hammered over the last year. And back on june 15th, i told you would rather own michael kors as expensive as it was than coach. Since then, kors is up 54 . While coach has declined another 17 . I dont know. Maybe better to be lucky than good. Coach drifted 24 points off its highs, and several disappointing quarters in a row, including the most recent in late january, samestore sales declined 2 . I remember when the company used to grow high Single Digits was disappointi disappointing. North america, getting eaten alive by competitors kors and kate spade. What we have seen in the long decline, taken coach from 79 to slightly below 50 is a stock that made that vicious, difficult ugly transition from beautiful growth stock to hideous value play. Coach sells 12 times earnings, considerably cheaper than the average stock. And they are a higher yielding stock and what we really have seen in retail, when companies stumble, they ultimately bottom at a certain point and start to rebound. Think about gap, that tumbled for years, gap bounced along the bottom and the company turned things around and rocketed higher. How about jones group . Got crushed in april 2010 and then bottomed, and stock got too darn cheap. Ann taylor, flat lined most of 2011, had a big