Transcript
Narrator (0:00)
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 podcasts CNBC Make It Online Course how to Build a Standout Personal Brand Three industry experts will show you how to create and grow your brand step by step.
Jim Cramer (0:38)
There's no time like now to start building your personal brand.
Narrator (0:41)
Register now@cnbcmakeit.com Personal Brand.
Jim Cramer (1:01)
Foreign hey, I'm Kramer. Welcome to Mad Money. Welcome to Kramerica. Other people make friends. I'm just trying to help make some money. My job is not just to put in context, but to entertain. To teach. Call me 1-800-743-CBC. Tweet me at Jim Cramer. This market isn't unprecedented, but I honestly haven't seen anything like it since back in the 80s and 90s. In those days, money roved Wall street like a gang of thugs, beating up, taking over sectors, relentlessly searching for big game, always on the lookout for the next get rich thing. And that's where we are right now at this moment. With The Dow gaining another 4 to 64 points today, S&P climbing point 3. 2%. The Nasdaq is advancing point 1. 4%. Nasdaq has too much data center, which was weaker today. Bear with me on that. Right now it is a wild chase, a mad dash, so to speak, to make money wherever it can be found. IPOs, mergers and acquisitions, giant upside surprises. When the gangs don't see bounty in one part of the market, they swing to another like lighting. It's rolling everything. It's just, it's a wonder to behold. So if you first started investing after the dot com implosion, you really have never seen anything like this. That's because Main street, which participated in the roller coaster rides of the 80s and 90s, got their clocks clean and the dot com crash. And they never regained its enthusiasm for stocks after the early 2000 bear market ran its course. Sell, sell, sell. With the enthusiasm gone, we just didn't expect to make a lot of money in individual stocks that were kind of forgotten about. And even when we did, of course it was always stocks. Think of fang and then fi and then the magnificent seven. But back in the 80s and 90s, before the great Deflation of all sorts of tech stocks and the obliteration of the banks and the rationalization of the health care stocks. We used to have lots of days, just like today, your head would be spinning. We see some stocks go up huge while others went down hard for no explanation. We saw IPO so big that they actually siphoned off cash from other areas of the market. I'm trying to put it in that context because it's all too easy to view this market in a much more negative light. I don't want. I don't want you to do that. Let's start from the most visceral and most cynical and I think the most prominent case of concern and worry. Let's start with something called Bullish. Today, a company called Bullish came public to broad a claim. This company is a digital asset exchange offering trading in all the cryptocurrencies at scale. The deal was more than 20 times oversubscribed. And the stock opened up for trading 143% from its offering price. Wow. The underwriters actually did their best to tamp enthusiasm. The deal was supposed to be 20.3 million shares priced between 28 to 31. But it was indeed upsized at 30 million shares, then priced 30 to 33. I would have taken that a little bit higher, but you know what I mean. Arguably they could have upsized it much more and made the price much higher. But like most recent IPOs, this was known as a sliver deal where the company only sold a small fraction of the shares. The less were left were left behind. Now, by the way, that actually was a routine trait of nearly all IPOs before 2001. But then the sliver deal kind of went the way of, well, let's put this way, went away during the Markets Post.com hangover. At the same time, the regulators cracked down on what I consider just to be this nonsense. But it's been a long time since then. We're back in the soup and there really aren't that many regulators anymore. It's a funny thing. When I was in law school, I wrote a stock newsletter to my parents called Mr. Bullish, something I tended not to talk about these days because it was so silly. Mr. Bullish, but so it's not lost to me that a big company actually calls itself Bullish and isn't embarrassed by the moniker. I mean, should this stock have been as hot as it was? I mean, honestly, yes. First, younger investors inherited are inheriting huge wealth from the boomers. They're all over this market. But not in a traditional fashion. The younger investors, Gen zers are not buyers. The S&P 500 index that bores them and they've seen millionaires created by the likes of Nvidia. And they want to make millions. Why not? They know that the biggest gains have come from crypto. Yet they also know their banks won't let them trade all the cryptos and offer no reason why they don't. And their brokers just want them in the S&P 500 period. Full stop. This morning, Tom Farley, old friend of mine, CEO of Bullish and the former president of New York Stock Exchange, told me the his company is going to be dealing in Solana. That's one of the lesser known cryptos. Now, unlike stocks, I'm actually allowed to trade crypto currencies. So what I did, as soon as I heard that, I went after the show was over, I went to where I always kept my savings, Fidelity and I said, look, I want to buy some Salana. The stuff that they're doing over Bullish. Nope, they don't make a market in Solana. They told me to go to Coinbase. Look, that's what it did. But my takeaway is you may think we're late in crypto, right? You may think that. But when I am turned down from buying Solana after hearing Tom Farley say that it's going to be their currency of choice, I think the opposite. I think we are still early even after all these runs, so few institutions make a market in it. To me that means Bullish and the whole crypto complex here. Well, let's just say they got more room to run. The others better get with the program, by the way, or they will not get these Gen Zers. But they're so stuck in the mud, they won't. They are about to be overrun by a whole generation with $100 trillion and they won't know what hit them and they will be out on the street. My shoes need to shine. So how do people get the money to buy Bullish if they like it? Well, you have to sell something else, right? But the people who like Bullish don't own Mercury, Pfizer. They own stocks like Palantir, also known as Palantir by a few dumb people and Circle and anything nuclear or crypto. So Palantir pulls back and the march to 200 gets delayed. Circle gives up a quick 10. It's the only crime is, is that it's up a lot that money heads to Mr. Bullish. Also like the old Days we are seeing huge register ring in stocks like how about big winners? I take Core Weave one of the biggest winners this year gigantically from its 40 hour pricing in March. Ben stowed when I told you to buy this one. It had the misfortune reporting on the eve of Mr. Bullish's deal. The numbers were nicely better than expected befitting the boom in data centers. Unfortunately, stock plummeted more than 20% today. Why? Because the lockup on insider sell you expires tomorrow night. Although there are a bunch of short stories out there trying to say it was a problem with demand. That's wrong. Demand is on fire. Totally wrong narrative. What does matter though is a ton of stock coming at you. Remember when I said that the underwriters are only bringing small slivers of stock to the market tomorrow? A huge chunk of supply loses the restraints and can start selling And I think that Core we will go lower and if you want to buy it, buy it after that. Now get this. I believe that people looked at Core. We've decided that if this linchpin name is no good they should sell everything AI and flow back to other more traditional software stocks that have been slaughtered like Salesforce or Servicenow. Those are minor cord stocks right now I like the major court. Of course they should go to other sectors that haven't got much love. One oddity by the way worth noting I want to clear up right now. So listen to me. There was a lot of talk today and video was down. AMD was up a lot because there was a short story. There had been this story all day that in video is going to be late with its new chip vera Rubin and AMD is going to benefit with its my 450. The story I look, I want AMD to do well but that story is untrue. The chip, the Vera Rubin is not late, it is on time. Someone was trying to make some money. They lied. It's okay because lying is really bad. But you can get away with it if you're on Wall street because we stopped looking into that stuff. But I'm still looking into it. I'm going to find out who did it because that's what I do for a living. Today was a day where the roving money had a field day. Case in point, we had a nice jump in mortgage applications as rates dipped down last week that ignited anything housing. I was going to talk tomorrow at my noon monthly CBC investing committee about how I thought that Home Depot was the cheapest stock we own. But literally I Wrote that when the stock was at 385. Now is it for seven. That was two days ago. Two days ago to how could the despot be up so much? Because when these marauding gangs of buyers come in, there's just not enough stock for sale and they have no patience. They buy with reckless abandon, taking the stocks up themselves. Or they go to some place where takeovers seem to be needed to rationalize industries. They go to pharmaceuticals and health care. Lowly worm. United Health was up today. Oh, come on. How about this? Bristol Myers went up today. I mean, did it snow outside? I want. I'm asking, I'm asking. Was it snowing today? I don't know. It doesn't snow in August. All right. Anyway, I'll talk about that in the investing club too. The money won't stay in one place anymore. It just can't. It has to roll. This is not the market of the last 25 years. It's the exciting market of the 80s and 90s. That got me involved and will get you involved. I like that. And that's why people are so skeptical of the market, because it's become exciting, enthralling. Even with real money being made every day by regular people. There will be plenty of regular fund managers who hate that. It's fun. They prefer to contain the fund of one stock like Gamestop and the rest of the market into one homogenized bushel of stocks. 500 them. Because they're really lazy. And they wouldn't even know how to look up a stock if they hit them in the head. Those days are over too. I say le bonton roulette, which is French. The bottom line. Yes. The good times are rolling. It's not the end of the world. It's just the end of the stable of just nothing but index buying by people who don't want you to make money. We're back to the old world where people like me want you to make money. And we will get you there. Okay? That's what we're going to do. It's not a gangster's paradise. It's a buyer's paradise. Get used to it, because it very well may be here to stay. I want to speak to Ian in Florida. Ian. Ian. Hey.