Why the heck is that news . Cmon, man. Ever since the great bull market of 1982 began 15,000 dow jones points ago, investors struggle to digest fresh fears. Dow ultimately gaining five points, s p advancing just 0. 8 , and future were down last night, what truly is a shame is this kind of evergreen story is now a staple to so much business journals. It costs people so much money. These pieces have caused a steady departure of individuals investing in stocks, in large part because they dont understand the fears do get digested, and when they do, stocks can rally. So i want to use in as a chance to talk about how risk and how how risk and stocks per se are risky assets, but you cant get it any reward without some risk. There are many kinds of fear, but only some are actually worth worrying about. Sell sell sell. For example, 2008. Sell sell sell. We had true Systemic Risk, which it seemed like all of our basics were on the brink of disaster, Systemic Risk must be avoided even if it means you missed the beginning of the rebound. There have been whole periods somewhere vast swathing of wealth were wiped out. Just like we saw in the 30s. And with the is that literally got cut in half is one of them, though thankfully the market managed to bounce back rapidly after the fed and Treasury Department contained the Systemic Risk. Then theres the fear of whether the mechanisms and methods of the stock market asset class are feared. In other words, is the asset class a fair place to invest . The risk that High Frequency traders posed is always there. It hasnt been fixed. Another flash crash could happen again, since they are so many unregulated rules and untested circuit breakers. Plus we know from all the Insider Trading prosecutions, the market invariably seems rigged. Now, i dont think that really affects the individual investor, but the prosecutors so without a doubt the Asset Classes tainted. Taint, justifiable fear. However, despite the headline in the journal, i dont think the current set of fears comes close to representing anything like a Systemic Risk. Sure, we know that oil is high, could be headed higher, that is a worry for me if if the oil workers in iraq walk off the job. Our governments inability to marshal natural gas as a viable interesting, were still hostage to the middle east. I said last week there have been several bear markets caused by iraq and the spike in oil, so its perfectly reasonable for the market to drop, 2 , 3 , 5 , if the price of crude jumps 10 . If it happens it could be trouble. It could be possible that iraqs oil fields get shut down, considering the job the government has done protecting its own people. I think we got a reprieve because baghdad did not fall over the weekend. We had another set of fears not long ago, right in the late part of the winter, early spring. Put simply we were worried that the biotech and new tech stocks that had lost traditional moorings for valuation would be overwhelmed by new supplies. How many times did you hear that the overvalued stock simply had to drag down the rest of the market once they started toppling . We also heard a lot of analogies to the 2012 dotcom crash. I dont think anyone other than me bothered to point out that the overvalued nasdaq actually failed to hurt the vast number of tech names when they rolled over back then in march of 200. In fact, the weakness in tech caused money to flood into nontech names back there. Thats now, here we are after many of these expensive and biotech stocks have falling, and sure the rest of the market continued to you poor higher while the trashed high flyers, they have begun working their way back up again. Yes, theyve been headed higher ever since salesforce. Com reported a fantastic number a month ago, then the stock didnt didnt get hammered. If you remember sailsforce signaled the start of the decline at the end of february. When railroaded, the stock jumped from and then the next day it started dropping like a rock, which marked the beginning of a long slog down to 49. Then when the company rotted last month, the stock managed to rally. That was a signal the rest of the group could go higher, look, im not crazy about the group, but it was a signal. When the twitter lockup expired and the last of the floodgates opened. Meanwhile, the ipo window slammed shut. The only deal weve had since then have been high quality ones. Like what i talked about last week. I told you that the high flyers would stop plummeting when they started getting a takeover bids. Lets not forget the mag any of sit gain you got for priceline or the absurd 239 premium that merck paid for i dentics. Its time to cover your shorts, before something youre betting against gets acquired, too. How about the rebounds in tesla . I still think thats overdone, but tesla, solar city, amazon, netflix, the cold stocks bouncing back to levels not even possible a few weeks ago. The fear that the ideologues who dont trust the feds stirred up literally for years is that when the fed tapered the bondbuying program, it would destroy the market. No one who fomented this fear has ever been held accountable. I get held accountable including things i didnt do or statements i didnt make. But this is what really g lly g me. As investor struggle to digest fresh fear, theyre getting a steady diet of good news. Arent we entitled to savor the tasty takeovers . Did anyone in the press taste the joy of the bidding war that caused the 70 rally in hillshire brands . How about digesting the 19 gains that shareholders of williams got today, because the company took a controlling stake in access midstream partners. Thats right, the acquirer rallied that much. The bids, they earned are not something to sneeze about the my view is as long as the acquirers can purchase strategic assets, were going to get more takeovers, now fewer ones, as long as the treasury depend and congress sit idly by and dont try to stop the tax known as tax inversions more on that later how can the market not instrument to go higher, though i recognize that iraq is a problem. As we try to digest fears, both justification and non, please remember thats been the case for agings and ages and gobs of points higher, and that while weve seen Systemic Risk before, i just dont believe that the fears the market is struggling to digest right now can bring us down to levels witnessed a few years ago. Hey, im mindful, i am not being blind to risk. Im simply trying to balance risk with reward and point out over the long haul, reward has certainly done most of the winning. Cory in massachusetts, cory . Caller jim bo, thanks for having me on. Not a problem. Caller i got a question. Great day, beautiful out. Ftft, what do you think of the stock . When it comes to this kind of network security, this is a good one. I think Palo Alto Network is good, but i think fortnet is doing good. Jim, how are you . Caller im doing great. Thank you for the excellent chapter in your new book, very nice. Thank you. Caller i had a twofold question on u. N. Pacific. The first question is that i heard that mexico was encouraging competition on rails down there. Im wondering if Union Pacific would be able to take advantage, and also with the Oil Prices Going up, if that would affect the rails more harshly than transports like trucking . Sure. Union pacific, these guys can get 400 miles to a gallon. They actually have a hammer long on the mexico business. Remember, we spoke to Union Pacifics jack korleski, and he said business was good. So im i like it very much. Sure, we can try to digest the fears out there, but i just dont think they fears are enough to bring the market down big. Im aware of the risk, which includes iraq, but im also aware that reward obvious wins. Are you caught up in the world cup craze . Weve seen what the best teams have to offer. All week long im looking at the best stocks. And its the luck of the tax code. Why the latest trend in Corporate America is picking up and moving earl where, and how you could benefit from it. Plus im breaking down one of the wall streets most valuable breakups of all time. Stick with cramer. Replace your laptop . Start with the best writing experience. Make it incredibly thin. Add an adjustable kickstand, a keyboard, a usb port, and the freedom of touch. And, of course, make it run microsoft office, with the power and speed to do real work. Introducing surface pro 3. The tablet that can replace your laptop. Yeah, citi mobile. Pay the dog sitter . And deposit that check . Citi mobile. Pack your bathing suit . Wearing it. Niiice bank from almost anywhere with the citi mobile app. Tax evasion may be a federal crime, one that nets you years behind bars, but if youre a corporation, you never need to sully your hands with such things as evading taxes. Theres a much easier way for companies to avoid paying taxes in this country. Not tax evasion, but tax inversion. Hallelujah where Companies Move their headquarters to some overseas tax haven, and boom suddenly theyre no longer domiciled in america. Thats right, this medtronics, the Medtronic Covidien tieup . The easiest way to changes your taxes is change your address. Get your pen and paper up. I have come up with a list of potential tax inversion takeover candidates that could turn out to be the next covidien. First, let me explain this concept. Even though its located ostensibly in mansfield, the Principal Office is in the fine old city of dublin, ireland, not far from guinness. In part because it has a series of terrific patient monitoring and blood flow devices. It looks like the main reason, is the lower hatch street address in dublin. Save a huge amount on taxes. Hey, you know what . They can play with their money kept overseas. What a windfall. And then you can get out of the paying the u. S. Taxes. Wouldnt you love it if you could buy some real estate and say the cayman islands, pay your taxes there instead of here, even if you never actually spend anytime living in the caymans . Sadly that is not how it works for individuals. But the tax inversion strategy does work for companies. I think we need to figure out who could be acquired next. Who else will be taken over at a big premium one down the road is eaton, a terrific Industrial Company known for making fantastic products for everything from lighting to area and trucking. And you might have thought that it was the corporate pride of cleveland, ohio, not unlike the calf leer, or the tribe itself. Wrong, its in dublin. I stayed at the four seasons in dublin once. Had i timed it better, i could have gone to their annual meeting there. Like covidien, it has the added advantage of being a terrific company. Next up, high about another spinoff, t. E. Connectivity, the Company Formerly known as ant, a proud pennsylvania electronics firm. You might think it lied in a real swell part of p. A. , but the actual address is 20 rye d rydenshaffer . Switzerland. Can you think of a better place . Not only would it let danner take advantage of the sweet swiss tax rates, but the company also has a pretty darn perfect fit. Though perhaps danner would prefer to move to ireland, in which kay i suggest buys pent air. You thought it was based in minneapolis . But in fact this fluid control company just changed its Corporate Citizenship from switzerland to ireland. How about this one if one . Chicago bridge and iron, cbi. Theres an old joke about cbi, that it doesnt make bridges or iron, and its not even located in chicago. The punch line is its located in houston texas, at one cvi plaza. No, its like the punch line of that joke is wrong, too, because its actually located in the netherlands, specifically the hague. Hey, isnt that where that court is . How convenient for flores to acquire this competitor and move to holland. They could build windmills and dikes together. This game could go on and on. The actual tyco would fit in well with honeywell or the while allowing them to relocate to switzerland. How about al al kermes, despite the companys giant fa is the in massachusetts, its located at one burgton road in dublin. Theres tons of American Companies that could save a boatload in order to relocate to ireland. But get this one. If thats not a good fit, how about Jazz Pharmaceuticals . Do you know they have the same address . Now, thats one convenient onestop tax haven shopping, this time for an 8. 5 billion company that could help a host of american firms lower thas their tax bill. Silly me, i thought jazz was located near palo alto. 6. And please dont forget weatherford and anseco. Does it matter that its named after the town in texas . Or calls 46rue debarcelona in geneva, switzerland, its home. What i didnt know about this driller is its head quartered not in houston, but actually lives in 6 chesterfield gardens in london where the website set, and i quote, has a large number of people. More than houston . Who knew they had oil in london. A friend of mine used to fly week after week from new jersey to insurance jit in chicago. I dont know why he went to chicago. Its located at 8 devin dpp shire in london. We could go on and on. All i can say is every one of these real American Companies is now a takeover candidate because of our ridiculous tax code. If pfizer wanded astrazeneca and rgesz me trong wanted heres the bottom line yes, i know its ridiculous, but they companies are making lots of money without ever having to leave home except to pick up the mail. Remember, the tax code specifically points out that every american has a right to avoid paying as much taxes as they can without breaking the law. Congratulations to all these companies. They have figured it out, and thanks to that theyre all juicy takeover targets, whether they admit it or not. After the break, ill try to make you more money. Coming up, street ball. 32 nations waited four years for their chance at international glory. But which of these Global Players has what it takes to achieve investing dominance. Jim is scouting the action. When he weeklong series kicks off, next. In a world thats changing faster than ever, we believe outshining the competition tomorrow quires challenging your Business Inside and out today. At cognizant, we help forwardlooking Companies Run better and run different to give your customers every reason to keep looking for you. So if youre ready to see opportunities and see them through, we say lets get to work. Because the future belongs to those who challenge the present. Seeing the world in reverse, and i loved every minute of it. But then you grow up and theres no going back. But its okay, its just a new kind of adventure. And really, who wants to look backwards when you can look forward . I know that soccer may not be that big deal yet in the United States. Even though in the rest of the world its more of a religion than a sport, but even we recognize the importance of the world cup, where countries all over the world are currently clashing from brazil. Thats why all week were having or own mad money world cup, where we look at the best stocks from countries that are major contenders in the real world club, and on friday, ill declare a winner. Where do we start . The spanish team will technically be the reigning champion for another month until someone else lives it is trophy in rio. Last friday span god man handled. Really a resounding victory, sweet revenge for the dutch who sawed the hopes snatched by spain in the 2010 finals. It looks increasely like a real competitor for brazil in the fight to take this years crown. In celebration of dutch might, were going to kick off our weeklong world cup series by highlighting my Favorite Company based in the netherlands. Unilever, the gigantic staples name. Unilever is the worlds Third LargestConsumer Goods Company by revenue after Procter Gamble and nestle. And as consumers good plays go, it gives us everything we want. A portfolio, a bountiful dividend, and enormous expos injure to fastergrowing companies. Unilever, food, free freshment, home care and personal care. Now, look, you might recognize them by their 14 biggest brands, talking about dove, vaseline, hellmanns, breyers, so many other. At a time when so many soft Goods Companies are grasping disprattly for exposure to rapidly expanding emerging markets, unilever already get 57 of that are sales. Major presence in asia, africa and the middle east, along with more balanced exposure in europe and north america. In short unilever has tremendous geographic diversification, like a modernday version of the dutch old east trading company. Unilever takes wellknown firstworld brands and then rolls them out into thirdworld countries, in order to cater to the rising middle class. Its like real growth in the world. A host of important categories across numerous emerging markets. Turkey, argentina and pakistan, countries where theyre either number one or number two in fabric cleaning, skin care, face care, deodorant, iced tea. Even though unilever guess and even though these operate in 190 countries, the company is still in the process of rolling out the biggest brands all over the world. At the moment dove and ax are in over 60 countries. Pretty amazing. Pretty amazing. Gigantic brands, they have a lot of rooms to expand worldwide, but what i really like, is that this is the kind of dividend stock that you can make the core holding, stock year after year, as long as you do the homework and management keeps delivering. Over time by reinvesting, you can get a terrific return. 129 shares for 2,000, the beginning of 2005, youve now an investment wo 5,825 sdlrz. A gain of less than ten years, plus over that period, unilever has tripled its dividend. I for know this is one of the most shareholder Friendly Companies on earth, with a very long track record of raising its payout. For those of you hiding in bonds, just remember the 30treasury gives you a 3. 4 year old, but unilever, it will actually increase its payout over time. Unilever hasl already had a good star