Investment Idea for 2012: Buy Fast Food Stocks, Avoid Banks

Jim Cramer of TheStreet.com and CNBC’s Mad Money points out that staying in cash in 2012 is not a great idea, because interest rates are very low.

Banks stocks are also an area to avoid, considering how heavily regulated the banks are now, and that they are tied to the unresolved economic mess in Europe.

McDonald's is one of Jim Cramer's stock investment picks for 2012.
McDonald's is one of Jim Cramer's stock investment picks for 2012.

Cramer also cautions that while cheap rental properties may represent a good value, in general one should approach real estate with caution, as it could easily lose more value.

What to buy then? Cramer points out that Americans are addicted to eating out, but economic times are still hard and people are less likely to choose expensive dining options. Instead, they gravitate to cheaper fast food outlets.

Cramer’s picks in this area are McDonald’s and Panera Bread Company.

Cramer also suggests diversifying in case any one economic sector does poorly. He points to Google as a safe technology investment. The company has high growth in several key areas, including social networking, mobile technology and cloud computing.

2 thoughts on “Investment Idea for 2012: Buy Fast Food Stocks, Avoid Banks

  1. I don’t know. Good financial advice no doubt, but you have to ask yourself if you want to be a part (however small) of the problem when it comes to the obesity epidemic.

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