Cramer's Stop Trading! How to Trade a Tax Increase (9/11/09)

Stocks discussed on Jim Cramer's Stop Trading! TV Segment, Friday September 11.

Kinder Morgan Partners (KMP), Enterprise Production Partners (EPD)

Given Treasury Secretary Tim Geithner's reluctance to give a straight answer on whether government spending will entail tax increases, Cramer put together a plan for trading a tax hike. First, he recommends buying municipal bonds, which have had a run, but may be due for a pullback. He also suggested buying high dividend stocks, particularly master-limited partnerships like Kinder Morgan Energy Partners and Enterprise Production Partners. Cramer's third recommendation was for the government; "They should be issuing $1 trillion in 30-year [Treasurys] right here, right now,” he said.

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Comments

[searcher]

How I miss the good old days of NCR paper. I predict a gold rush in forms preparation for health care eligibility and tax (new and, of course, simplified) forms of all types. We'll need an H&R Block emulator for health care applications and sundry forms.

2009 Sep 13 01:24 PM