What is ailing this market. This week i looked up the fabled july 15, 1979 crisis of confidence speech to see what jimmy carter said during a period where america was suffering from a collective malaise. And i quote, for the first time in our history in the history of our country, a majority of our people believe that the next five years will be worse than the past five years, carter told the nation. Again, quote, it is a crisis that strikes at the very Heart National will, end quote. Of course at the time we were suffering from gas lines caused by an opec embargo, and from wild inflation caused in part by a weaker dollar that eroded our savings. Now the price of oil is on tenter hooks after being cut in half and its the dollars strength thats hurting earnings. Theres some kind of aversion to owning stocks which i think is part of a genuine belief that the future will be worse than the past for many americans. Carter talked about a poisoned political environment but the partisan rancor of today. That may have been a genuine era of good feeling in retrospect, but people rebelled against carters ma lace speech and ended up voting a man who talked more positive, ronald reagan, and it ushered the great bull market. The bull market has been running ever since interrupted by the crash of 87 and the horrendous Great Recession selloff. Im not making any kind of statement about the election in november, but i do think the rancorous nature of the debate is a tweet by a noncandidate, do you really want to own the drug stocks . Consider the value of vrx which seems like it had fallen off the radar screen is once again trading back down at 21, not too far from its 52week low. Who wants to be sitting on stocks with exposure to International Trade . We had a very smart guy on friday, a fellow by the name of john cassimus, the former ceo of us figure out what ails the group. His answer is quite telling. Im going to quote again. Honestly for me, the election. I think is its having a big impact. I think people are really scared right now. They dont know whats going on, end quote, but that political situation only scratches the surface of whats awry here. Almost every day we get national you numbers that are weak or showing no growth. There have been multiple divisions down of the u. S. Gross domestic product. Yet the drum beat of people calling for rate hikes continues apace. Cycles. While im never crazy about fighting the fed, historically they only raise Interest Rates when the economy is getting hotter, not weaker, so its throwing us all off. Thats why the endless prepping for this hike seemingly inevitable, december rate hike actually seems almost fanciful. What universe is these People Living in . Can only be described as fear itself. There was a remarkable Conference Call last week from delta airlines. In addition to management, there was a direct mention of terrorism really hurting international travel. Its kind of just put out there as, like, terrorism. Between the strong dollar and the terrorism, the airlines cant carry their own weight. Lets face it. Theres Something Else at work in many sectors. Too Many Companies. Zoes kitchens founder u quote, theres a lot of competition. Not all of these restaurants can survive because theyre simply arent enough people going out to eat. Have you noticed the action at mcdonalds lately . Its been shelled beyond all recognition in just a too months time. Not very encouraging. Maybe not enough people going out to eat. If this competition problem were confined solely to the restaurant space, that would be one thing. But the logic of too many take retail. Here weve got Dollar Stores going against discounters, going against club stores, direct to consumer companies, including amazon. We know that we have way too many doors, way too many retailers in those malls, but they dont seem to shake out. They hang on. The number of chains has barely decreased. In the old days, we would have scene outfits like sears and kmart go under a long time ago. Not now. Weve got a motivated owner who refuses to quit. Do you really need target the stores that tend to sell the same stuff, stuff you get at amazon . I dont think so. There are even too many tech companies. Weve had a scattering of mergers. For the most part, though, there are so Many Companies fighting against each other for business in these industries, you got to be worried about earnings all the time. Here we are, earnings season. Sometimes i feel like thats banks, and im going to have more on this later. But in the old days, every time they seemed to run out of room to grow, theyd just buy some other bank. Cut expenses. But now the banks are so big they arent allowed to make any more acquisitions. Theyve lost that spur, and in its place are myriad regulations that cut into the bottom line. Hey, not democrat or republican. Just telling it like it is. In the end, though, when you consider how many reasons there are why the market should get hammered, you have to wonder why the heck arent we down more . I think were doing a decent job of hanging in because there are lets just say stocks themselves, the class, are the best game in town given that Interest Rates are so low. Plus lightning can strike as it did tonight with an amazing quarter from netflix, which grew at a much faster pace than the company thought it would, adding 3. 2 million members internationally versus a 2 million member forecast. Content moved the needle at netflix. Way wall street thought and didnt have the big grow margins and the stock is being helded after hours. Rather than viewing stocks as a bountiful option against bonds, for many, the stock market has become the lesser of two evils versus bonds. The risk seems too high versus the risk of so many stocks i follow. There seems to be only one cure for them, which is lower prices. When we arrive at a lower level for many stocks, we can be more enthused. For now, though, it feels like theres a good enough reason to it. That changes when either the fundamentals improve, like with the netflix, or the price gets too cheap to ignore. So heres the bottom line. I think we have to wait for more certainty, more clarity, and less risk before we start buying into this weakness because to me, it means that all of those positives are made more definitive really only by lower prices. Bob in my home state of new jersey, bob. Caller thank you for taking my call, jim. Of course. Caller two questions. Should i buy, hold or sell . Also is this a foreshadowing of the fate of american malls . It appears to me as many people tire walking as shopping . I got to tell you jcpenney, i do like jcpenney. Ive liked it because i think Marvin Ellison is doing quite well. There was a note last week saying he didnt think they were going to make the quarter, and thats in part because macys isnt going to make the quarter. Its a very tough time for these big box retailers. Just incredible how they go in and out of favor. Joyce in new york. Joyce. Caller hi, jim. Thank you for taking my call. Since you have mentioned that Financial Institutions should benefit from an Interest Rate hike, im wondering if this will include paypal. Not really. Paypal doesnt have that exposure. Paypal does report this week. Its a case we want to see ive seen the internal memo. It is family reasons. Visa might be interesting. My Charitable Trust owns it. If it can break down, 78, 79. John in new york. John. Caller hi, jimmy. Beautiful day. Beautiful day, but the eagles lost yesterday, so its partly cloudy for me. Caller oh, geez. So anyhoo, im looking at rh for me a lot of good ones throughout the years. You guys are doing a great job. I am so glad you mentioned long term. The stock spiked up. Its now back under 30. I dont think the quarter is going to be anything to write home about, but i do think the longer term direction is definitely clear, and i think youre going to be able to get that at a very good price. I say buy some here and see if it goes back to where insiders bought it, which would be 25, 26. Longterm bargain. Gary friedman did not put that money to work idly. From the fed to the election to the price of oil, it seems like the only thing we can be certain of in this market is we dont know whats going to happen next. Until we get a little more clarity, hold off from being aggressive. On mad money, im giving my take on the company thats recently been anointed the new best ipo of 2016. Ill reveal it just ahead. I know you want to know about it because youve asked about it repeatedly. Then are investors hitting the stocks. Ill tell you if its time to power up your portfolio. Then its the largest girlled business in the world, and it could be coming right to your doorstep. Thats right. Im talking to the ceo of the girl scouts. Youre not going to want to miss why am i so devastatingly handsome, im in a fragrance. Ad, and my sweethearts gone sayonara. This scarf, all thats left to remember. Hows a guy supposed to move on the long lasting scent of gain flings. coughs cough doesnt sound so good. Take mucinex dm. Ill text you in 4 hours when your cough returns. One pill lasts 12 hours, so. Looks like im good all night some cough medicines rs. Lets end this. What are these . What is it . Duck lips. Quack quack. Plastic surgery duck uh huh you are a backwards duck. Instead of quack, he says no, kcauq. Kcauq. Kcauqqq. Kcauuuu. When you ache and havent slept. Youre not you. Tylenol . Pm relieves pain and helps you fall fast asleep and stay asleep. We give you a better night. Youre a better you all day. Tylenol . Is that credit karma again . Just wanna see if my score changed. You wanna check yours . Scores dont change that much. I havent changed. Oh really . I love summer weddings oh no. Yeah, maybe it is time. Maybe i should check my credit score. Try credit karma. Its free. Oh woah. Thats different. Check out credit karma today. Credit karma. Give yourself some credit. How do we explain the stunning action in knew tannics, the Enterprise Software play came public with a bang, a little less than three weeks ago. Right out of the gate they became the best performing ipo of 2016. The stock came public at 16 and spiked up to 37 at the close, giving a monster 131 gain in a single session. People say how can you make money in stocks . Then the next trading day there was so much enthusiasm for this thing, it rocked into the 44. But things turned very quickly. In the last two weeks, nutanix has been hammered on no real news. Investors fell in love with this company virtually overnight, and now it seems like theyve fallen out of favor just as quickly. How do we our heads around the initial enthusiasm and then the subsequent profit taking. There are a lot of reasons investors went crazy. For starters the company has an cloudbased platform that converges all of businesses server management, storage, and virtualization needs into a single package. They call it hyperconverged system, and it lets their clients run their servers more efficiently and more cheaply. According to a study commissioned by nutanix, customers can employ their technology in 80 last time. So without getting too deep into the Information Technology weeds here, they do have an impressive the company has got some impressive customers across different end markets. Toyota, kellogg, nordstrom. Best buy, nintendo, and, yes, the u. S. Department of defense among others. Its real. Beyond the fact that nutanix has a compelling concept, the numbers are down right incredible, another key ingredient in the smoking hot ipo. Investors willing to pay hand posted 88 Revenue Growth. That was actually an acceleration from their 77 growth in the previous quarter. 80 growth in the one before that. Their billings were even better. Get this. They grew by 118 in the latest quarter. That is a major pickup from even the 94 increase in the previous quarter. I dont know of anybody doing 80 , 70 . Granted nutanix is still an early stage tech play, but they but the main reason nutanix is such an explosive ipo . Listen. This is a really important focus. This is what i call a sliver deal. Thats my own term. Its called a sliver deal. Lately weve seen a bunch of initial Public Offerings where companies became public by selling a tiny sliver of the amount of stock there is. That tends to cause an enormous spike right out of the gate buzz theres not enough supply to sate the buyers. Its a proven method for making its the way to create a hot deal. In the case of nutanix, the company sold 14. 87 million class a shares as part of this ipo. Thats now the float. The shares it can trade freely on the open market. As weve seen with these past sliver deals, their actual float is tiny compared to its total share count, which is what matters ultimately. The company has another 122. 4 million shares of class b stock. After that, nutanix can do a secondary offering, that allows investors to start selling their class b stocks. No wonder the stock soared. They didnt give investors enough supply to meet the demand. So institutions that got stock on the deal were then willing to pay up for it in the aftermarket, okay . Because they had no essential low initial cost basis because of that stock they got from the than the stock price is currently trading it that its worth it to go pay up, but that period is now over. I have told you many times i do not like sliver deals. I hate em because theyre setting you up for failure ultimately. Once the lockup expires, nutanix is going to do a secondary, and the size of that float will explode. When that happens, the supply of stock will suddenly outstrip the demand for it, and the share price will likely get clobbered. How do i know . Weve seen this story play out wall street seems to be getting wise to this whole sliver del scenario, which is one of the reasons i think it tumbled down in the past two weeks despite there being no real news about the company itself. The shareholders ultimately see the writing on the wall. They want to take some profits. Now, theres a reason people suddenly soured on these sliver deals. In recent weeks, two of the best performing ipos of 2016, twilio and Acacia Communications have grinder, precisely because they both announced huge secondary offerings so that their preipo investors could do some selling. Twilio and acacia were both sliver deals. Twilio came public in june. A week and a half ago, twilio announced a 400 million secondary offering. Since then, well, youve seen it. The stock has been completely eviscerated. Its down more than 25 . The company is terrific. We had them on. The same thing has happened with acacia. This was another classic sliver deal. Less than two weeks ago, acacia was trading at 113, its rally fueled in part by the companys very small float and a lot of short sellers panicking. The same size as the ipo, and the stock tanked, falling down to 92 bucks. Thats 8 bucks below where they ultimately priced that secondary. Against the backdrop of acacia and twilio getting beaten to a pulp, you can understand why nutanix has too because sooner or later nutanix is going to hit you with a secondary. Every few years well have a wave of these ipos that keep the float small. Investors will get burned enough at of course they want the hot deal when it first happens. Then people forget. Investment bankers go back to their old tricks. I need you to remember because Companies Like acacia, twilio and nutanix arent the most egregious examples. Zynga and groupon, two of the worst ipos ever. These companies i mentioned are nowhere near as bad as those two, but after their secondary offerings a few months later, both stocks were obliterated and groupon and zynga are not to be compared with twilio and acacia. Its not just low Quality Companies that do sliver deals. Shake shack, very well run, terrific concept. When they came public in january 2015, they only sold 5 million shares, another 30. 5 million shares restricted sitting on the sidelines. Investors started worrying about what would happen when these restricted shares started sure enough, shake shack did a secondary in august of 2015. It was at 60 bucks. The stock is now trading at 32. Im not saying these stocks can never recover. However its clear youre in a world of hurt if you overstay your welcome in one of these sliver stories. Heres the bottom line. Nutanix came public with a bang, but thanks to recent selloffs and sliver deals, investors are starting to think about ringing the register on this one. Despite the fact that nutanix experience says the stock wont find its footing ultimately until we get some of those big blocks of stock to flatten up the float. Dont be dismayed by the weakness, though. Theres just well, lets just say thats how repulsive sliver deals ultimately work. Much more mad money ahead. Once in the realm of teenage boys and male college students, video games have become entertainment for the masses, including me. With mobile gaming revenue expected to grow over 20 in to Start Playing the space. Then did you know every female secretary of state in United States history is a former girl scout . Ill talk to the ceo to find out how its developed such a following. And, surprise, the banks are doing better. Ill explain what the markets missing. So stick with cramer. I have asthma. One of many pieces in my life. 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