Transcripts For CNBC Mad Money 20171222

Enthraled with the company, if the rules say sell you sell it. One thing you learned in my career, no matter how much you believe in something, you violate the rules of the road at your own peril where the heck do the rules come from it is not like they were handed down on high thand carved into stone tablets. You cannot deduce from the market works the way you do gravity. No, the rules come from experience and particularly my experience ive spent nearly 40 years in this business. And in that time, you Better Believe ive learned some powerful lessons in many cases, i learned the hard way because i dont want you to repeat my mistakes and i do want you to have the benefit of my whole career, tonight i want to layout my most important rules for investing. The stuff i really live by some of the stuff may seem basayev ick. You forget the rules at your own peril. I convinced myself it was okay to make an exception to have a cheat day. Ignore my discipline of just this once. For so reason, it seems compelling at the time whenever i broke my rules, lets just say i got burned. Its like that old joke about the guy who goes to the doctor and says doctor, it hurts when i stretch out and shake my hand around to which the doctor replies, then dont do that what exactly should you do or not be doing as the case may be. Lets stick down to the most important rules for investing. Number one bulls make money and bears make money and pigs they get slaughtered. I say this all the time. Because so often in my career, i see stocks go up so much that people were intoxicated with the gains. They slipped up and were geniuses too at this point of intoxication, you need to remind yourself not to act like a pig. I heard the phrase on the desk of old trading desk of the part. I would have a good run and michael would tell me i made a lot of money perhaps too much money maybe i was being a pig. I had no idea what he was talking about. I was glad i caught a major gain of course, not that long after, we got a vicious sell off and i gave back everything i made and then so. That is when bulls make money, bears make money and pigs get slaughtered as one of my rules it is so deeply engrained, i have a barnyard full of sound effects to tell the story. The bull, the bear, the pig and the guillotine to be clear, bulls dont have a monopoly on piggishness. We had major declines over the years. Other than the dotcom burst in 2000 and the financial crisis in 2008 and 2009, most stocks did bounce back quickly. At this point, you made a killing if you went long at the low of 2009. If you stayed short, if you were a pig and got greedy betting against the market going down, you got slaughtered. Of course, it begs the question how do you know when youre being a pig . There is no such thing as a stupid question, but stupid answers. You didnt need me to tell you when you are being a pig if you did not fhit the alltime high, you dont need an Investment Adviser you need a psychiatrist. If you let your winners ride, you lost a fortune the financial crisis is more stark. If you walk around owning a huge sta stock in 2008 and the banks dropped, you were beyond p piggish. One of my chief goals is to help you stay in the game the hardest part of investing is holding on through difficult periods. Taking shortterm pain to have longterm gains. The people who got wiped out in the codotcomes were the ones w never took off the table they got piggish and got slaughtered. Same for the ones that never came back from the financial cautious ringing the register near tops kept you in the game that is why i remind people have you taken out your profit . Have you booked any gains or are you being a pig . You never know when stocks you known are going to really get crushed. You never know when the market could be just inn aililated i think you will be in for a world of hurt. There will be times when stocks keep going and going and going i coin the term fang for facebook, alphabet, netflix and google i got on a run it continued to move up and up i felt like a pig after the stock moved. I felt like a fool when it kept galloping. It pbugged me. That is the price you pay for following the rules. You need to recognize for every huge pile of cash that is left on the table with amazon, you are side stepping gigantic losses like the kind you would have had if you stuck with the market in 2000 and 2008. So never forget. Bulls make money bears make money pigs get slaughtered ill keep repeating it forever with the sound effects because it is just that important. Rule number two, it is okay to pay taxes. No one has ever liked paying taxes. But like death, taxes are inevitable and unavoidable yet, the aversion to paying taxes on stock market winnings borders on the pathological. Many times people have gigantic gains, but refuse to take any profits because they dont want taxes to cut into the winnings wall street is littered with broken hearts of investor whose made the mistake i went to a presentation a couple years ago from a Hedge Fund Manager who recommended buying stock of macys because of the real estate value the stock ran a great deal and right for profit taking. I know people who owned it for years with hefty profits and did not want to ring the register. Why . They would have had to write a check to uncle sam next thing you know, the stock of macys is obliterated cut in more than half. Courtesy of competition from amazon the darn thing just got crushed. Those who did not want to share profit was uncle sam ended with no profit at all what lesson is that . Make your peace with the tax man. Some gains are unsustainable need to be taken a profit on taper is not the same thing is not the same in the bank account gains can be afemoral. The last thing you need is Capital Gains taxes. When it is time to sell, sell. In short, stop fearing the short man. You wont regret it. Im not saying blowout everything take some profits. Bottom line, remember my top two rules. Bulls make money bears make money pig pigs get slaughtered and dont be greedy. Dont be worried about taking a taxable profit chris in ohio. Chris. Caller hi, jim thanks for having me sure, chris caller we have about 1,000 of disposable income and neither of us have a 401 k match with our jobs. We are basically trying to figure out we have a mortgage and were trying to figure out what would be the best thing to do with the extra 1,000 of disposable income. That is what an index fund is for. Take 10 and use for mad money buying a share of something. Thats okay. My first stock trades were one share. Five shares. Seven shares you need an index fund to start until you build up wealth. How about jacaimo in illinois. Caller thank you, jim. You talked about first time investors should stay away from risky Asset Classes until they have 10,000 allocated in mutual funds or exchange funds. Yes caller my question is seeing all these crazy bull market we have going on. Seeing the market ramp up and cryptocurrency go up if i dont have 10,000 invested in mutual funds, what do i do . Do i sit down and let opportunities pass or wait it out . I understand. A young person i want people to save. Thats my principle goal if you want to put money aside, mad money aside, and do what i think is basically gambling with it, im not going to stop you. The thing i most care about is getting people to save if you are saving that way with risk as long as you understand the risk im okay with it i cannot back away from the index funds as the fundamental of how you invest. Jeff in california jeff caller jim, this is jeff in lake tahoe thanks to you and your staff for your informative and helpful program. Thank you caller i have a twopart question pertaining to Interest Rates and specifically yield curves can you explain to us home gamers what a yield curve means and why did the analyst say when theres inverted yield curve that it portends recession coming and what happens if the tenyear tbill goes to over 3 how will that affect the stock market and grab your skis and see us in tahoe. I love lake tahoe i used to play cards on the nevada side. The fed raises rates too high. The curve down 10 or 20 years. That say kis a curve that leadso recession. But other cases it does not. Im not hard and fast in that rule i do think as rates go up, business slows that is undeniable we are such a low rate and business is so strong that we can afford it. Mike in california mike caller good afternoon, mr. Cramer mike. Caller listen, two things. One is thanks for taking me call and leaving us 9 to 5ers with extra money. Thats all i want to do thank you. Caller here is my question i know you are in a hurry. Im fine. Caller it is concerning dividends. I want to know do you take the money and put it in your pocket or back in the stocks if you do, how do you set it up . You have to do dividend reinvest it is just a checkoff. You have to. My chattel trust wont let me. I always tell club members, please reinvest. Just take that money because theres nothing like the compounding of the great compounding that you get particularly with stocks that have good dividends. Remember my first two rules. Bulls make money bears make money pigs get slaughtered dont be greedy. Please be disciplined. Dont be afraid to pay the tax man on profits you earn. It is a lot better than riding things to loses. Takes it off the table much more mad money ahead. Im putting my four decades to experience to work tonight counting down the rules for investing to help you navigate the market stick with cramer. Dont miss a second of mad money. Follow jimcramer send jim an email at madmoney cnbc. Com or give us a call at 1800743cnbc miss something head to madmoney cnbc. Com. [lance] monica, it is absolute chaos out here gale force winds, accumulations up to 8 inches. Dont know if you can hear me, but [monica] whats he doing . [lance] can we get a shot of this cold front, right here. Winter has arrived. Whooo hahaha [vo] progress is an unstoppable force. Brace yourself for the season of audi sales event. Audi will cover your first months lease payment on select models during the season of audi sales event. Trust 1 doctor recommended dulcolax. Use dulcolax tablets for gentle dependable relief. Suppositories for relief in minutes. And dulcoease for comfortable relief of hard stools. Dulcolax. Designed for dependable relief. News flash at the end of the day, were only human if you remember one thing about being an investor, thats it everyone is inn fallible we will make mistakes. It is the nature of the business and nature of humans if you own individual stocks, you need to follow a set of rules. Rules designed to protect you from yourself. Rules i learned the hard way this brings me to the next commandment. Never buy a stock all at once. Do not buy all at once no broker likes to fool around with partial orders. No Financial Adviser has the time the game is to get the trade on. In a big way make the statement buy get it on the sheets or in the portfolio. From where i stand, that is all wrong. 100 wrong never buy all at once or sell at once stage your buys. Stage your sells use this term on wall street work your orders try to get the best price over time and not necessarily in one day. Maybe multiple days. Why . When i first started out as a money manager, i wanted to prove to everybody how clever i was. If i wanted to buy caterpillar, buy it all at once put me up to 50,000 cat. That means buy 50,000 cat. That means im the smartest guy in the universe. Doing it big i think back about that young cramer with mostly a full head of hair, by the way. I was one arrogant son of a gun. I was arrogant and i was wrong what was my mistake . If you want to buy 50,000 shares of caterpillar, dont do it at once what if it goes down immediately . Never buy all at once. I should have been buying in increments of 5,000. It sounds pleameezly you buy over time. Get the best price you can put it on a Small Business and hope it goes down to get more at lower levels. I know we are trading institutionally and the institution guys are saying 50,000 is nothing. I know we trade in size. I still invest and invest from the trust. Whenever we have a new name to tell club members, we buy in small increments 5,000 shares at a time over the course of multiple days when you buy once, you declare the stock wont go lower do you think thats craze any buying gradually in stages why dont more people do it my way . Why dont investors with shares in exxonmobil buy in increments . They want to be big, too they dont want to waste the brokers time. Your broker wants to get the trade done i know my brokers hated it when i placed incremental orders. It is just stupid to put a chunk of your net worth in one stock at once. You need to resist feeling you are making a statement when you purchase a stock i bought and sold billions of shares of stock. Billions you know when i got in at the bottom and then it was off to the races . One trade in 100 im presentedtty good at this g. Buy slowly i tell the club. Humility beats every time. Next rule. Buy damaged stocks not damaged companies. The mall is having a sale and you pick up a piece of merchandise and it is broken when you get it home maybe it has a hole in it. It is a shirt. In the real world, you can return it and get your money back there are guarantees galore. If you buy a stock and it turns out to belong to the defective company, you eat the losses. It is caveot emptor. You need to establish broken stocks names down for no good reason. Macro costs and broken companies with stocks trading lower. Sometimes damaged companies can be easier to discern when they started plummeting in 2015 with the fears of one of the pharmacies it wasnt a good sale to rush toward valeant tumbled to the Single Digits before bottom a lot of people thought valean, it was like an Auction Going do down the problems meant the company was going down and tax ico be tc it could be caused by etfs or problems overseas or greece. Just because the stock is down doesnt mean there is anything wrong with the business. How do we he establish between a broken company and stock i like to develop a list of stocks i call this my bull pen in the club when wall street throws a sale with the whole market coming down, i use that as an opportunity to pick up the stocks on my list designed in a cooler moment with a cooler head the bottom line is you never really know. Thats why this rule works in tandem with the last one you never buy a position all at once what you think is really a damaged stock may turn out to be a damaged company. Take your time you are much less likely to end up with a large quantity of broken merchandise stick with cramer. Seasons greetings from cnbc when this bell rings. It starts a chain reaction. Thats heard throughout the connected business world. At t Network Security helps protect business, from the largest Financial Markets to the smallest transactions, by sensing cyberattacks in near real time and automatically deploying countermeasures. Keeping the world of business connected and protected. Thats the power of and. Let out your inner child at the lexus december to remember sales event. Lease the 2018 es 350 for 319 a month for 36 months. Experience amazing at your lexus dealer. Trust 1 doctor recommended dulcolax. Use dulcolax tablets for gentle dependable relief. Suppositories for relief in minutes. And dulcoease for comfortable relief of hard stools. Dulcolax. Designed for dependable relief. If you want to build a portfolio of individual stocks, a big if, since theres nothing wrong with getting all of the equity exposure from the index fund that mirrors the s p 500. You have to be bullish about it. Do the homework. Listen growing up, my kids hated homework they thought it was punishment when i looked at what they were studying, i sympathized with their point of view. What is the relevance of what they teach you in high school . In both . That is the terrible attitude. I take that back as a parent, i always encouraged my kids to study you never know what you will be interested in later in life. I bring this up because you make this into homework you think it is irrelevant of the portfolio. When you need to listen to the starbucks call which is a good one or the Analysts Expect from netflix which is about growth. If they own the stocks, they dont want to hear it. They think im being a scold they want to own it. They dont want to do anything when i say do the homework says listen to the Conference Calls and do the research. They dont want part of it they look at me as im a teacher or school marm asking too much for the busy 21st is wrong i regard this as just plain lun as i you never want to do that. They know nothing people still do it. They do it for a couple of reasons. On the one hand, the buy and hold school of thought you dont need to keep track of what is happening with the company. You are in it for the long haul as it makes it okay. You have other people who dont have the time to be that diligent i have the solution for you. Get someone else to manage the money or do the smart thing and invest in a low index fund if you cannot devote a few hours to the portfolio, you should not mess around with stocks. It is the buy and hold premise that is an issue in the 1990s buy and hold is the beall ndall of investing ill hold on to the cmgi you have to google it. It has to go back to 100 where i bought it. I can substitute i have 100 companies i can put in that sentence the experts say if you hold for the long term, isnt everything supposed to work out for the best of course, this philosophy took a real blow during the financial crisis when people practiced buy and hold got wiped out that is why i say homework before you buy a stock, listen to the conference. You have to. That is the minimum. Go to the companys web site you can read the research. Read news stories. Google the darn thing. Everything is available on the web. There really is no excuse. You are not up begging at the Goldman Sachs library with the mic mic microfische. If you didnt pay attentioattenu will be soundly beaten with managers with good track records searching for high quality stocks it is not a strategy it is just being lazy. The next rule is another essential that i harp on diversify. D diversify. Diversify to controlrisk if you control the down side, the upside will take care of itself control of the down side is managing risk. What is the biggest risk out there . Sector risk. Stocks in the same sector tend to trade together. Especially at extreme moments. You know about 50 of the action in the given stock comes down to sector in some of the areas because of etfs it is higher. I dont care how great the stock was in 2000. If you have all of your eggs in one group, you got scrambled oil from 2008 to 2016. The only thing keeping you getting nailed is diversification. That is why we play the game thats why i have been playing since 2002 diversification is the only free lunch in the business. The only investment concept that white sox f works for everyone if you mix up, you wont be wiped out if one group gets obliterated. A diversification is so obvious and nobrainer, if every adviser has been telling people to do it for years, how is it that anyone can be undiversified it comes back to the homework issue. A lot of people dont know what they own they could not tell you. They end up with stocks that are similar without knowing it i still feel quite a few calls they dont need fang is a diversified strategy you own variations of the same thing. Social mobile cloud. They trade together. Faux diversification another thing, the oil stocks and no matter how much i like them, i cant count up of chesapeake and halliburton jj, eli lily they leave you way too exposed to Health Care Risk to overwhelm the group at once. Having an undiversified is not an amateur risk. Many professionals do not like it because the bizarre Money Management in the country. If you concentrate all of the bets, you will beat everybody who is diversified out there a Hedge Fund Manager who does that and gets lucky can market himself as a success and get profiled by every magazine and raise capital from investors who do not realize how much risk they are taking on here is the bottom line. Whether amateur or professional, do your homework and keep it diversified. It may not be exciting or sexy, this is the maintenance that protects you from monster losses down the line. Mike in South Carolina mike caller jim, it is mike in South Carolina thank you for calling caller i was wondering if im a new investor of 100,000 how many stocks in my portfolio . Is that a lot or not enough . After ten, you are a mutual fund if you are a real stock junkie, you can take on a lot. If you have help for the alert club, it is not that big ten is the maximum that most do. Dont do more than that. You wont be able to do the homework roberto in texas roberto. Caller jim i just had a question because im a new investor im 29 i have 1500 i wonder how i should invest in an index fund. S p 500 and index thank you. Dont forget index funds keep you diversified. We like to diversifdiversify. Sure homewo homework isnt fun losing money is worse. Avoid monitor lodaster losses. So stick with cramer looking for a last minute gift idea . A golf now gift card good to tee times at thousands of courses visit golfnow. Com. [vo] when it comes to investing, looking from a fresh perspective can make all the difference. It can provide what we call an unlock a realization that often reveals a better path forward. At wells fargo, its our expertise in finding this kind of insight that has lead us to become one of the largest investment and Wealth Management firms in the country. Discover how we can help find your unlock. Look, i dont want to go all zen in art of portfolio maintenance with you when it comes to managing your money, you are the worst enemy dont take it personally what do i mean if you want to invest wisely, you need to be fighting off your own worst impulses we are not robots. We have emotions those emotions can throw you off your game. That is why the theme of the show is discipline trumps conviction you obey the rules to do the smart thing when he motioemotioe telling you to do the opposite panic. It is not a strat guegy. A stock gets hammered. Then investors sell after the hammers. The market gets crushed. People bail. Something gets inn fiilated there is something basic about the desire to flee if you are a stone age hunter who stumbles into grizzly bears, panic is helpful it tells you to run away it is not a useful emotion with analyzing the stock market or running away or you should run toward the truth is almost always be a better time to sell than in a panic. A better time to leave the table than whatever moment inspired you to panic in the first place and dont i know it. In 2010, i was in the flash crash. The market fell 900 points in a half hour. Watched the monitor for the ticker i could not believe what was happening. People were dumping stocks because everybody else was doing it that is what a panic looks like. Thats textbook. Viewers on the set picked a stock they loved and buy it using limit orders so you dont have to accept the price you did not like the result, do this day, people come up to me and thank me for that advice in the flash crash i realize nobody ever made a dime panicking i did the same in 2016 with the 1,000point selloff in two days. I said buy in limited orders that is what we did with the trust. That started the dotcom club. We got good buys because they took advantage of everyones panic. If you feel like fleeing and never touch a stock again, i want you to do something for me. I want you to take the opposite side of your emotions. The opposite side of the trade you see the high speed route of the sector or stock, why not buy a little get a feel for it. See what i mean. The most rewarding trade you can make are those where the decks are cleared out by terrified folks using market orders. Sell, sell, sell. They dont get the exit doors are not as big as they think they are mind you, im not saying buy every stock or selloff or panic. They are not all worth buying. When people freak out about an individual company, it could be with good reason im saying it is a rare moment you wont get a bounce after a big decline. The next time you want to dump everything, take the deep breath and wait for the sell before joining the freeing masses expecting of down days i have another rule to help you with declines. When the stock market gets unrelentingly negative, he who defends everything defends nothing. It was true 250 years ago and true now he was talking about battle plans. The point stands he who defends everything defends nothing. What does that mean . It is about how you evaluate your holdings. You dont need to worry about your exposure. When things get more difficult and you are on the defensive, you need to recognize that many of the stocks you buy in good times may not fit the environment. When the economy is getting slammed, you cannot hang on to everything you own if you defend all your positions in the market that turns against you, that is the recipe for you getting blown out of the stock market when i say defend, i mean you cannot treat it like a buy opportunity and keep chipping away if you do that, you quicklycapil when the market gets necktive, you need to get selective. Thats why i wrangle my stocks for the action alerts club members. Ones are stocks i buy now. Two ares stocks i wait threes are ones i sell i know which i should defend when things get tough. I make the plan not in the heat of battle. I know which to cut or use sources of capital lets say tech is hammered it is important you dont hang on to the complex. Toss out the rest for cash use the cash reserves to buy Higher Quality Tech Companies at lower prices the ones with no catalyst they get the heave when things turn bears karen cramer worked with me for years. Used to call this circling the wagons around the best names the first few times you do it, you curse yourself you may slaughter stocks you owned for some time. After you experience a number of rough market, you realize how valuable this is you end up with a great cost basis. Great investors know how to ignore the emotions when the emotions get in the way of making money the next time the market gets slammed, dont panic nobody made money panicking. Dont keep your eyes closed. Vicious markets can give you buying opportunities focus on the capital on your favorites rather than chasing bargains in lower quality merchandise when they were not bargains at all. Rich in new york rich caller hi, mr. Cramer. Its a pleasure. Could you please im good, thank you. Could you please explain the technique of buying calls. It could be or should be used by us home gamers to boost or pad our portfolio. A great question. The zarian brothers have done fabulous work on options alsooptions actions on friday afternoon. They could be a low risk way to be able to limit your exposure if you get the book getting back to even. I have a 100page exposition of how to use calls to limit your down side and get maximum upside ex exposur exposure david in california. Caller jim cramer. Thanks for having me im glad you called caller quick question. For millennials knowledgeable about the market where should they invest money other than fang . You know what a lot of fanglike names and sorts of industries. I Like Aerospace a long term bull market. Get something in that group. I like foreign exposure. I think that is not a bad idea an etf with Europe Europe is way behind where we are and will be that way for multiple years if you are really young, why not look at some riskier biotech stock. You have your life to make the money back of remember, emotions have no place in investing they get in the way of making money. So the next time the market gets slammed, dont panic nobody made a time panicking what you need to do is your homework dont chase and dont buy damaged merchandise. Just damaged stocks. Mad money is back after the break. news anchor downtown traffic is still bad. Expect massive delays. news anchor 2 all lanes on highway 50 remain closed at this hour. news anchor 3 the stats are in and this city leads with some of the worst traffic, with the average driver sitting in gridlock the equivalent of three days a year. For every hour that youre idling in your car, youre sending about half a gallon of gasoline up in the air. That amounts, over the course of the week, to about 10 pounds of carbon dioxide. Growth is good, but when it starts impacting our quality of air and quality of life, thats a problem. So forwardthinking cities like sacramento are investing in streets that are smarter and greener. The solution was right under our feet. Asphalt. Or to be more precise, intelligent asphalt. By embedding sensors into the pavement, as well as installing cameras on traffic lights, we will be able to study and analyze the flow of traffic. Then, we will take all of that data and we use it to optimize the timing of lights, so that traffic flows easier and travel times are shorter. And sacramento is just the beginning. With advances in cameras, sensors, and network speeds, we have the ability to make cities smarter, and happier. What excites me about this technology is that were using some of the most cuttingedge machinelearning, and ai, to help solve the most fundamental challenges that cities face around the world. Who knew asphalt could help save the environment . lani and the possibilities are endless. Were drowning in information. Where, in all of this, is the stuff that matters . The stakes are so high, your finances, your future. How do you solve this . You dont. You partner with a firm that advises governments and the fortune 500, and, can deliver insight person to person, on what matters to you. Morgan stanley. Welcome back to tonights check yourself before you wreck yourself edition of mad money. Im a big believer in the idea of you get money saved up, you are in control of your financial destiny. You need to be careful you are the one with the most power to derail your financial future look, mistakes are part of the investing game you cannot rule them out i want to be sure you dont make the same mistakes twice or three times or endlessly i have rules for investing to protect you from the investing i made and young and inexperienced. Rules like dont own too many stocks buy, buy, buy at my old hedge fund, i would spend three hours analyzing the mistakes of the day before you wonder why i retired made myself sick to my stomach every day. That is a task i completed every morning before everyone came in the office i did it between 4 00 a. M. And 7 00 a. M im an early owl i would analyze every trade. I would figure out how i could have made more money or much more importantly lost less money. I was for lack of a better word maniacal about it. I linked it to having fewer positions. When we own fewer stocks, we tend to make more money. It was axiomatic i wont buy a stock without taking one off the table i try that with my trust you dont just buy shares with more and more companies. You need to limit your holdings. That is a great discipline and adopt pronto all of the Money Managers have hundreds of positions. I dont know how you stay on top of more than 30. All of the really good Money Managers have a few names they know inside and out. They can buy confidently on the way down when the market goes awry that is why i say dont own too many stocks. You end up selling stocks that are good for or not as good. Hindsight is 20 20 take it from me. Someone who has owned stocks for 40 years thats how to make a portfolio work for you that is Portfolio Management you dont want to be a mutual fund manager by the time i lost the most money as Hedge Fund Manager, my sheets or positions were thick as a brick when i made the most money, my sheets were one sheet of paper double spaced. Remember, when you are a pro or amate amateur. It is almost always possible that you have too many positions. Rule of thumb, if you are just investing for yourself and you own more than ten positions, own more than ten stocks, maybe you should pare back a bit you can have too many stocks i know it is hard to have too much of . Cash which brings me to my next rule. Cash is for winners. At times cash is a perfect investment it drives me crazy how few people recommend it. They hate the market they are 95 instead of 100 they think the market stinks they take high flyers against the position no, no, no as an investor, that is the wrong way to approach it you dont like the market . Sell stock raise cash dont buy put options on the stocks you own or find other stocks to short your current positions. The odds do not favor you winning on both stocks the short and long it is a strategy whose goal is mediocrity if you take cash at lower levels, that protects you against the lousy market i was one of the biggest traders on wall street for a time. When you put options in to hedge, i almost always lost money. When did i make money . When i bought put options from low Quality Companies that would have low shortfalls or overvalued versus the fundamentals if you do not like the market, you dont need to twist into pretzels sell stocks and go into cash that is shortterm treasuries. It is earning more than it did a while ago or they say cant be in cash. Thats for losers. No cash is for winners. Especially if you think theres a major disaster ahead had or the market is going to have a prolonged selloff. I grew up in a different time. I shorted when i had an edge i cannot short at all by contract not for the trust. Back when i could, i did not short stocks for the sake of shorts on or against the longs i dont care about not having enough exposure. I care about not losing money. If you dont like the market if you think there is nothing compelling to buy. I suggest you sell stock and raise cash go sit on the sidelines. Nothing wrong with that. Wait for the situation to improve. Believe me it is never the wrong call when you dont like the tape or dont like what doesnt make sense the bottom line, be careful not to own too much stock and too much cash. Stick with cramer. Are you raising your hand . Good then its time for power e trade the platform, price and service that gives you the edge you need. Alright one quick game of rock, paper, scissors. 1, 2, 3, go. E trade. The original place to invest online. I thyou never got the brakes looked at . L. Oh yeah. No. At cognizant, were helping todays leading manufacturers make things that think and do automatically. Imagine that, a world of new Digital Products and services all working together for you. Can i borrow the car when its back . Get ready, because were helping leading companies see it and see it throughwith digital. The tweets are piling up holy cow one from quentin who asked jimcramer. I dont like bonds until very late i like to extend it a little and say not until you are in your late 50s do i want to start seeing a lot of bonds. Why . Because people live longer than they used to and bonds dont generate enough return how about higher yield dividend stocks moving on. Could germano be the next produce irrelevant he said mad tweets i would like to see from you a show titled typical errors of emotional investing. That is a great idea. I will do it i know emotional investing produces mistakes that lead to big losses you have to check them at the door and i will do that for you. Another tweet. This from steve daniels. He says jimcramer. There is a place called vanguard and they have a total return fund of all stocks that one is one of my absolute favorites. Stick with cramer. Shes nationally recognized for her compassion and care. He spent decades fighting to give families a second chance. But to help others, they first had to protect themselves. I have afib. Even for a nurse, its complicated. And it puts me at higher risk of stroke. That would be devastating. I had to learn all i could to help protect myself. Once i got the facts, my doctor and i chose xarelto®. Xarelto®. To help keep me protected. Oncedaily xarelto®, a latestgeneration blood thinner. Significantly lowers the risk of stroke in people with afib not caused by a heart valve problem. It has similar effectiveness to warfarin. Xarelto® works differently. Warfarin interferes with at least 6 bloodclotting factors. Xarelto® is selective, targeting just one critical factor interacting with less of your bodys natural bloodclotting function. For afib patients wellmanaged on warfarin, there is limited information on how xarelto® compares in reducing the risk of stroke. Dont stop taking xarelto® without talking to your doctor, as this may increase risk of stroke. While taking, you may bruise more easily, or take longer for bleeding to stop. It may increase your risk of bleeding if you take certain medicines. Xarelto® can cause serious, and in rare cases, fatal bleeding. Get help right away for unexpected bleeding, unusual bruising, or tingling. If youve had spinal anesthesia, watch for back pain or any nerve or musclerelated signs or symptoms. Do not take xarelto® if you have an artificial heart valve or abnormal bleeding. Tell your doctor before all planned medical or dental procedures. And before starting xarelto®about any conditions, such as kidney, liver, or bleeding problems. Its important to learn all you can. To help protect yourself from a stroke. Talk to your doctor about xarelto®. Theres more to know™. I like to say theres always a bull market somewhere. I promise ill find it for you right here on mad money. Im jim cramer and see you next time. Welcome to the shark tank, where entrepreneurs seeking an investment will face these sharks. If they hear a great idea, theyll invest their own money or fight each other for a deal. This is shark tank. With an easy way to take a comfortable bed with you everywhere you go. Hello, sharks. My name is jim pittman. Im from yorba linda, california, and my product is airbedz, the original truck bed air mattress. Im here today seeking 250,000 for a 15 equity stake in my company