Transcript
Homes.com Narrator (0:00)
Homes.com knows that when it comes to home shopping, it's never just about the house or condo, it's about the home. And what makes a home is more than just the house or property, it's the location and neighborhood. If you have kids, it's also schools, nearby, parks and transportation options. That's why homes.com goes above and beyond to bring home shoppers the in depth information they need to find the right home. And when I say in depth, I'm talking deep. Each listing features comprehensive information about the neighborhood, complete with a video guide. They also have details about local schools with test scores, state rankings and student to teacher ratio. They even have an agent directory with the sales history of each agent. So when it comes to finding a home, not just a house, this is everything you need to know all in one place. Homes.com, we've done your homework.
Jim Cramer (0:48)
Hey Fidelity, what's it cost to invest.
Various Advertisers/Voiceover (0:51)
With the Fidelity app?
Jim Cramer (0:53)
Start with as little as $1 with no account fees or trade commission. US stocks and ETFs. Hm, that's music to my ears. I can only talk.
Strauss Zelnick (1:05)
Investing involves risk, including risk of loss. Zero Account fees apply to retail brokerage accounts only Sell order assessment fee not included. A limited number of ETFs are subject to a transaction based service fee of $100. See full list of Fidelity.com commissions Fidelity Brokerage Services LLC Member NYSE, SIPC.
Jim Cramer (1:42)
Hey, I'm Kramer. Welcome to Mad Money. Welcome to Kramerica. Other people want to make friends. I just want to make you money. My job is not just to entertain, but to educate and teach you. So call me at 1-800-743-CBC. You can tweet me at Jim Cramer. There is a reason I always hesitate to recommend the hottest stocks in the market, the ones with the parabolic moves, the monstrous one day gains. Why? Because days like today, that's why days where you can lose so much money in the high flyers, more than you made when they were going up, that it just takes your breath away. Sure, once again, the averages masked some of the pain, with the Dow gaining 260 points. S&P shed 0.51%. Nasdaq did tumble 1.51%, though we had plenty of winners today, mainly the stocks of companies that can improve their businesses, presumably by using artificial intelligence transports, industrials, retailers, restaurants, health care. On every single conference call they talk about how AI is saving them money or making them money or certainly making them more productive, even if in reality it's marginal or even fanciful or worse. Yes, chimerical. We have companies that were supposed to have their earnings hurt by the GOP Dash 1. Companies like Campbell's or PepsiCo or Smuck or even craft hides that could benefit from AI. Their stocks are going much higher, as if the GOP somehow stopped working and we all got hungry for junk food. But then we have the chief maker of the GOP dash ones, Eli Lilly, soaring more than 10% as it rolls out trial after trial to see what these drugs can do beyond weight loss and diabetes. Things like alcohol and tobacco addiction. They can make the ATF obsolete. Louis got a joint venture with Nvidia where they're going to treat hard to treat going after hard to treat diseases. Hey, come on. With that kind of firepower, they'll develop a new line of forever people. Louis Gaines, also arch rival Novo Nordisk. Pain. It's not enough that President Trump wants to annex Greenland. Eli Lilly's constantly taking share from Danish Novo Nordisk. We've got Novo on tonight and you may actually want to sample some or at least consider the GOP Dash 1 pill form that they have where you have a momentary edge over Eli Lilly. Still use an injector there. But he's not alone. The irrepressible Johnson Johnson with the effervescent Merck and Amgen. They simply refuse to quit. Why not? Even after the runs they've had this year alone, their stocks are not expensive versus the rest of the market. These are old fashioned solid earners without the Tony Soprano overtones. The banks are crushing it when they say they're using artificial intelligence. Guess what? They really are. They're probably sampling the new anthropic product that can help their general counsels to keep some legal work in house rather than paying through the nose for outside counsel. Much to the chagrin of say, Thompson Reuters, which has a similar product but apparently not as good and much more expensive. The revolutionary anthropic can also write code for you if you ask it to measure your software systems versus say what the program says is the best is basically a knock off version of Gartner, which is why that stock's down a cool 37% since the beginning of the year. And the industrials, the old fashioned non data center industrials are looking like huge winners from AI even if we don't know yet whether they deserve it. These stocks are doing so well. Honeywell, Dover, Emerson, Wowzer can they run? But in reality, all they're really doing is catching up with the rest of the market. They are not expensive historically versus the S&P 500, which is how you evaluate these things. These winners are why you should be invested in individual stocks. Think of what they've done. They have earnings, they have dividends. They have. They're not that expensive at least versus Tech. They are delights with buybacks. They don't overpay the people with stock options. Plus during earnings season they can give you huge upside surprises. And their stocks are being rewarded this year. It's how the stock market was meant to work. It's how stocks work before tech took over and made itself the only investable part of the market. That's over too. I don't know if there's still huge amount of hope for tech. There's some. Obviously tech's a good part of the market. It's just that many of these stocks suddenly aren't worth as much as we thought. Some of that's because the whole enterprise software cohort is going out of style thanks to AI. More on that later. On the other hand, we have lots of companies that don't make any money and got infected by speculation. These were the year of magical thinking stocks I told you to avoid. The ones I warned you off back in October. We don't want to own quantum stocks anymore because they're 2030 science projects. Flying cars. Hey, Boeing's got a flying car. If you want it, just go on Boeing. Will you have anything to do with batteries? No, don't. No, thank you. Don't you know the President likes fossil fuels? Get with the program and sell those bad boys. Oh, and it gets worse. Nuclear power? Sure, the President wants it. I don't blame him. Long term, nuclear is the best way to generate clean energy and keep all these data centers running. But let's face facts. We're building up Potemkin Village Gemini of nuclear shells that won't be ready until 2032 with the earliest radio. Probably later than that. You want to wait in oclo? Be my guess. I'd rather wait in Oreo, which is of course made by Mondelez and they had a not so hot quarter. Oreos are safer. Can we spare Iran? That's Irene. Can we not only be. I mean, those could be halved and then halved again and still be outrageously expensive. Well, how about all those crypto derivatives that people fall over? The immersive bitcoins, the strategies, AKA microstrategies There, Port. I'm saving the best for last. The overvalued companies that are made up of really smart coders when we don't need coders that much anymore. AI is getting so powerful that this entire profession ain't what it used to be. All the coders turned out by Stanford these last couple decades. They were. They were so envious of. They are about to have a hard time. For the first time in 30 years, I can admit that Stanford was my safety school when I applied to Harvard. Didn't need it. We know some tech companies can transcend the morass. Alphabet, the parent company of Google, report a stunning quarter this Evening with their Gemini 3 platform already racking up an astounding 750 million monthly average users. But any gains could be a little muted there because they are spending about 175, 185 billion on capital goods. Wall street was only looking for 115 billion. That's a big chunk of money, by the way. A lot of could be headed to Google favorite Broadcom, but it's a $4 trillion company. I'm not sweating the program. Gemini is winning the race, at least on the consumer side. So I think it's worth every penny to spend. Remember Google spent to defeat Bing and all other commerce. I think it's doing it again. It worked. Oh, and how about buying the hottest of the hot? If you watch sandisk or Seagate or Western Digital, even Micron, you know what it's like to fly too close to the sun. In fact, does anyone here remember the legendary Richard Pryor? He knew what it was like to own sandisk. It is like being the first man on the sun. I had to do it. Never fear though. There are solid tech companies that make a lot of money, do big buybacks and even offer dividends. They can still go higher, but they're paying penance right now for the stock excess of their brethren. When they're done cooling off, these are going to come back. However, their future rallies will be driven by higher earnings, not higher price earnings multiples or higher price sales multiples. They have to start making a lot of money now. There's something good going on here. The speculators, the bitcoiners and all their somewhat bogus derivatives which were supposed to be used as currency, probably never will. The blockchainers, the quantum computers, they are supposed to. Yet they're going to go away. The phantasmagorical electric Kool Aid acid test cars, they're all shrinking. I don't want their owners to go with them. If you own these, it's still not too late. But if you're not willing to diversify into a Kimberly Clark, if you can't take owning a Vartis or General. If Federal Express is too much of a drag, it may be too late for you. If so, the bottom line, let me give it to you. If you despise diversification, I got some real bad news for you. If this volatility keeps up, volatility being a code name for getting the bejesus kicked out of you, and you stay undiversified, then you're going to get smashed by a Bitcoin derivative. One that guarantees you the full faith and credit of an analyst or a hedge fund manager who spouts their virtue on every media outlet. I say these things should never have been born. For lots of these. Incredibly, it's still not too late to sell. Sell, sell, sell. I want to go to Joe in New York. Joe.