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Charles Schwab Host (0:30)
This episode is brought to you by Schwab Market Update, an original podcast from Charles Schwab. Join host Keith Lansford for this information packed daily market Preview delivered in 10 minutes or less, including projected stock updates, monetary policy decisions, and key results and statistics that may impact your trading. Download the latest episode and subscribe@schwab.com MarketUpdatePodcast or find Schwab Market Update wherever you get your podcast Podcasts My mission is
Jim Cramer (1:01)
simple to make you money. I'm here to level the playing field for all investors. There's always a bull market somewhere and I promise to help you find it. Mad Money starts now. Hey, I'm Kramer. Welcome to Mad Money. Welcome to Kramer arca. Other people make friends. I'm just here trying to make a little bit of money. My job is not just to educate, but to entertain a little. So call me at 1-800-743- CNBC or tweet meacham Kramer Today Today we saw what would happen when you give peace a chance. Or at least when a toothless Iranian bureaucrat says he wants to negotiate a possible end to the war. Looks a lot like exactly what was happening before the war, didn't it? This market yearns for status quo ante. So oil is going lower, interest rates are going lower, and the averages explode higher. GAL surging 1,125 points. SB polling 2.91% NASDAQ soaring 3.83% House of pleasure it's a growth stock bonanza. After five weeks of the House of Pain because of the war, it's a surprise like this. Well, I gotta tell you, it should have been expected. I don't know if it's real. Nobody does. The president of Iran is the best to figure out. He's not. The supreme leader certainly doesn't control the military. Arguably he can be rolled out to say he wants a deal. We offer him one. And then the parliament of mules, they just say, hey, listen, we reject that. The mullahs can do that. We also don't know what President Trump Told them that made an Iranian official willing to come out in favor of negotiations. Hey, maybe it's all for show. Before we get into what can happen, I do want to spend a second talking about what did happen to many of your portfolios. Many of you have told me in this intervening month that you hate this market, that it's a treacherous market and it's causing some real doubts about whether stocks can be counted on anymore as an asset class, especially for your retirement. If you're closing in on it, if you're one of those people, and I hope you aren't, but if you are, now is your chance. Tomorrow morning, do some selling. I didn't want you to sell into the big brass, but you do it now, maybe you're not cut out for making big money in the market. Never think about that. That's fine. It's not for everybody. If you can't take the pain of this environment, I say take advantage of today's rally. And you know what? Sell, sell, sell. I make this point because one of my basic principles is do not sell stocks into a meltdown. I've been saying that you'll get a moment where things reverse. There's always a better moment. So if the market has really been hammered and gets oversold, you're going to get this kind of bounce which will give you much better prices. Today's a perfect example. If you, if you're patient and didn't throw stocks into that miasma that has engulfed us, you'll usually get better prices for your hard earned money. Don't give in to the maelstrom of negativity. At least wait for it to end before you dump your stocks. Personally, I would say stay the course, you know that. But not everyone has the level of pain tolerance that I have. Anyway, you have now gotten a better moment to sell. So take it. Now, for those of you who are sticking around, like me and my Chapel Trust, let's think about what happens when the market tips its hand like it did today. You saw it. You saw. It's like playing genius where you put those three queens away. First and most important, we now see that when the war ends, rates go down. They go down noticeably. They go down because we now realize that there's a huge amount of inflation stemming from the war. Not just from oil going higher. We saw that at the pump, but from ancillary products that came out of the Gulf. Fertilizer, polyethylene, aluminum. We didn't know going to the war that our farmers were going to need to Raise prices to us because the price of fertilizer go much higher. You allow the fertilizer to come back down, you can stop the pernicious food inflation. Polyethylene. Who knew? It's one of the basic building blocks of plastic. You could ripple through the system very quickly. It's going to happen. Aluminum is the preferred way to can and it's also become a key component in cars. These inputs might come down and maybe come down hard because the goods themselves can be produced elsewhere. But we did not realize how much inflation this war could bring. Of course gasoline inflation is no joke. Even though America's energy self sufficient, guess what? It turns out we don't have export controls which means the price of oil here is tied to the price worldwide. No matter what people say that we're independent. Natural gas did stay the same though because it's a regional market rather than a global market. The amount we can export is limited by our infrastructure. We have too much gas here. So what happens in the rest of the world really doesn't impact us. Remember that. How about lower long term interest rates connected to housing? As long as they stay down. It's a simple leap for to have this new Fed chief Kevin Wash come in and he's have an easier time trying to get things rolling for some rate cuts. I really don't care what these random Fed heads are periodically interviewed have to say. I don't. I think that Kevin Marsh is going to be a tough Fed chief where he gets inputs from all the voting members, then he tells them what he wants. That's not actually how it works in practice but we're going to see if he can pull it off. I think he can. All those naysayers who say rates are going to go up. You know what? You're wrong. I really do. I'm just willing to say it. You can replay the tape all you want. Just go ahead. I already see it. Hey, replay it now.