Transcript
Keith Lansford (0:00)
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Jim Cramer (1:25)
Hey, I'm Kramer. Welcome to Mad Money. Welcome to Cramerica. Other people, my friends, I'm just trying to make you a little money. My job. Not just to explain, entertain, put it in context. Call me 1-800-743- CNBC. Tweet me imKramer. It happened again. Investors, egged on by negative commentators in their media echo chamber, drowned in a wave of pessimism last week. And you know what? They missed one of the best days of the year. Today, people just can't seem to process the most important three words in the investing lexicon. Stay the course. Nobody wants to stand pat when they think they can get out and then jump right back in. That's incredibly difficult, especially when you get an indicator that showed less inflation than we thought, like this morning at 8:30am but because the negative bias before that positive CPI, people end up missing days like this one with The Dow gain 4484 points, the Nasdaq climbed 1.13% and the Nasdaq jumped 1.39%. They missed a ton of money that could have been made because it now looks like rate cuts are in the offing, perhaps as soon as September. Here's why people can't come back in after they sold. The things that are driving people to sell don't get undone. Or at least most don't or they get undone, and only after stocks have rallied and therefore it's too late for you. Get back in. The train leaves the station. All aboard. And you're left behind, waiting for another choo choo that never comes along. Let's go back in time to a week ago. Look at what Made people so negative. First, a day that we've been anticipating for months. August 7th was looming large. That was a scary day. You bet. It was just about tariffs. People kept talking about sweeping tariffs. How many times have you heard the word sweeping when it's connected to tariffs? In fact, the tariffs were so sweeping that they now stood higher than they were in the lead up to the Great Depression. I knew that would come up. Right. You mentioned the Great Depression for only one reason. You want to scare people. And in fairness to me, it loves to scare people. Because you know what? That's what sells papers. That's what get ratings, whatever you want. I learned that I've been writing stories for many, many years, more than four decades in the business media. It's a real problem because you end up scaring people away from stocks and creating terrific buying opportunities for anyone with a fortitude to stick around. That's what happens in business journalism. Oh, and if the tariffs weren't sweepy enough, our president slapped a 50% tariff on India. Slap. There's another overused word. Do you ever hear anyone say stuck? No, it's slapped. Journalists won't say stuck. Journalists went nuts on this India story, though. The president, we learned, was undoing years of work to make our nation's friends. Well, that may be true, but we had a $46 billion trade deficit with India last year. One of the reasons why the war in Ukraine doesn't end is because India as well China as funds it when they keep buying Russian oil. So it's hard to say exactly how good a friend India might be these days. The 50% tariff on India was another reason that was sold to us for more selling for get out of stocks because of the 50% tariff. Or at least it was presented that way. As shocking as these tariffs were, there was nothing more frightening. Oops, there's another term, what we've heard endlessly than what happened with the Bureau of Labor Statistics after we got a weak employment number on the Friday before last and more important, radical negative revisions. I was totally out the lunch thinking that our President had checkmated Fed Chief Jay Powell with a series of weak employment numbers that would force the Fed to cut rates. Hooray. I didn't count on the President grading himself on the employment report. I didn't know he didn't trust the numbers. By the way, the numbers are. They're trustworthy. Just that they might take two or three months before you get them. Well, that's great. I call that suboptimal. What matters, though, Is that Trump was furious so he fired the head of the Bureau of Labor Statistics. Oh my. The journalists blow back. We've never seen anything like it. Oh, there's another phrase you've never heard about I've never used. Right. We have a dictator for the President and he doesn't want the real numbers to come out. Oh please. Trump wanted employment up and he wanted the Fed to cut rates anyway, and that's not how it works. Trump did turn a win into a loss, but as I said on Monday, who cares? I don't love that he's bringing in someone new to massage numbers. However, that's not really relevant to the stock market. I love it if the government outsources stuff to companies that could do it faster and better than the Bureau of Labor Statistics. But again, that's got nothing to do with the price of stocks. Oh, and let's not forget the President called for a full stop tossing of Lip Bhutan, the new CEO of Intel, because he supposedly had divided loyalties between us and China. How much work had the President really done on that one to make that finding? Clearly not that much. Because then he reversed himself and started calling the man a great American. His success in rise is an amazing story, the President said. Oh well. Second act a do over for Trump with Luke Bu. By the end of last week, things seemed pretty darn dire. Capitalism had taken a huge step back. You couldn't trust anything in this new small, smooth hauling regime. And right on top of that, we learned that the government planned to take a 15% cut of Nvidia AMD's AI chips chip sales to China. The two words I heard then last straw. Yes, it looks like the government's expropriating the profits of private business. It didn't matter that the video market cap increased by $150 billion when the company got the green light to sell the AI chips in China last month. What did I hear? Outrageous appropriation. The end of the sacrosanct hands off relationship between business and government. Oh, come on. Every one of these filaments creates a dark sinister shadow over this market. When would you think you're a chump if you stay the course? If you own stocks? Who can own stocks in situations where the President expropriates your profits, calls for the resignation of distinguished executives, fires officials in the bowels of the BLS whom he thinks are against him, slaps on sweeping tariffs on everybody. But perhaps Greenland, which he expects to annex anyway. So let me tell you what I've said and thought through all this if maybe you've missed any of my commentary. Simple. See, I'm like Marshall Sam Gerard in the movie the Fugitive, when Dr. Richard Kimball asserts that he didn't kill his wife. Gerard says, I don't care. I don't care about these issues. I am about trying to help you make money. Sure, if I were King, I probably wouldn't have done what Trump did last week or this week or next week. Let's just say that's not my style. But just because the President does something that you may think is personally outrageous, that's not a reason to sell your stocks. Especially because of a day like today where it's so clear you shouldn't have sold. Believe me, if I thought you should say if you should get out now, you know what? I'd shout it from the rooftops. I've done it before. Sometimes to good effect, but other times to bad effect. And you know what? That's because the things I was worried about were easily undone. So that was a mistake. I think most of what Trump does can be undone if it becomes a problem. After all, that's how he operates. More important, I just can't relate most of the stuff to the companies themselves and the profits they make. They're making tons of money, more than ever. They're giving you a tremendous return. They figure out how to change their supply chains, how to deal with mercurial presence. Thank you, Jensen Huang and Tim Cook. And they do what's necessary to help you make money. They want to make you rich. You're not letting them. The only thing many people won't let these CEOs help them. They're too busy selling stocks as they think the Republic is on fire. But even if they were right, that's not actually even a reason to sell stocks. Then the market simply doesn't care about this stuff, people. So from a money management perspective, you can't let it get in your head. Even as from a personal point of view, it lives there. I don't care the bottom line, unless the government says it's going to nationalize entire industries, I think we have to accept Marshal Girard's admonition. And just so you recall, Dr. Richard Kimball didn't kill his wife. They found the one armed man and he too had nothing to do with what with the price of Palantir Technologies certainly going to $200. Let's go to Amar in Washington. Amar.