>> yeah, i'd say idvo, it's got a lot of banking exposure internationally. >> guy? >> david, that stuff better be in the mail. >> delicate to be in the mail. you have a trade? >> alk, mel. >> thank you for wchating "fast." "mad money" starts right now. my mission is 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 cramer, welcome to mad money. welcome to cramerica. my job is not just to entertain and educate, but i want to teach you and explain tonight i'm doing it. so call me at 1800-743-cbc or call me. i always hear people talk about

what's working at the moment. and the old days, when the great mark haynes ruled the mornings around here, i remember that each time i co- hosted he would introduce me as reverend jim bob from the church of what's happening now. it was fun back then and seemed like everyone was running their own personal hedge fund. there was an understanding that a stock could be here today and gone tomorrow and everyone was fine. everyone was fine with it. those days are over though. and if you recommend a stock for a trade, even if you say buy it today, for the analyst meeting tomorrow, and then you sell, there will always be a video, a youtube kicking around, shows you liked the stock but never gave the sell call. so we've gone beyond that. we're all about educating you to be a better investor. the same thing we do every day at a higher intense level at the cnbc investing club that i want you to join. tonight, i want to introduce you to the concept that is so important and it's called "suitability." basically what stocks fit you?

what investments are right for you? for your age and your temperament? i heard the concept of suitability when i was at training at goldman sachs. now called private wealth management. i have been buying individual stocks for myself and others before a half decade before i got to goldman in 1989 as a summer intern. at the time i was watching financial news network. that of the predecessor to cnbc. whenever i could i'd run to the harvard business school library where they had all the old research reports from long gone firms like base and lehman about stocks totally on a catch to catch can basis. those who grew up with the internet have no idea how hard it was to access information in the '80s. if i liked a company i would have to ask the librarian for a microfiche of the firm's sec filings. these were little pieces of plastic and you read the file usually six months old by the

time i got them. everything i did back then is online and updated. the imperfections were legion and more on that later tonight. i spent all week trying to find a stock that i thought would work. one stock that would be good for a week. where anyone who wanted to invest could take the idea and then i changed my answering machine, yes my answering machine. i changed the message to 20 second rap on the stock. don't know answering machines? can you imagine, well, some company used to make them. with all those jobs wiped out by your cell phone. same in the services for that matter and talk about jobs that aren't coming back. anyway i say his this jim and i'm not here right now. but i like both the chart and the recent numbers from people express. a long since bankrupt airline that i used to jet down from new york to interviews. my recommendation for a monolithic memories. a red hot stock that was run by a guy who decades later helped

save tesla. testifies the last ceo before elon musk. and anyway, monolithic shot up like a rocket that week and only acquired by advanced devices at a very big premium. the best cramer's not at heel call the machine ever had and believe it or not jim is not home became a rallying cry for lots of people who were call megaback then. hoping i wasn't home. so they can get the tip. without having to interact with me. not long after i got a job at goldman sachs one of the officers at the firm called me in. and got the machine with this recommendation and he heard the recommendation. he told me to call him as soon as possible. i did. and he asked me if i knew what suitability was. and i had no idea. so he introduced me to the concept and he asked me did i ever consider that many people might not be ready for the stock and i was recommending it to them one-on-one without any sense of whether it was right

for them? suitability. was it suitable? i said i always thought the stocks were pretty much a caveat emptor situation. unlike say vacuum cleaners you can't take stocks back to the store for a regun. they come with in guarantees and there's no deal? the executive hammered it into my head that before you recommend a stock you had to know what that person wanted out of it. what do they want from to believes? you had to know if the stock was right for them. monolithic memories wasn't exactly right for anyone other than the most risk seeking investors out there. the financial bungee jumpers. so let's start there. today i want to you ask yourself, what is your tolerance? how much risk do you want out of the stock? you see, stocks are pretty peculiar pieces of merchandise when you think about them. you buy a car and you know it's not worth as much the moment you leave the lot? but there's all sorts of

warranties. you buy house. however, before you buy it you have a binder with insurance so you can get your money back. clots can be returned and pcs and washers and dryers you name them but stocks? if you buy a share of nike a day of foot locker says there's been a slowdown of jordans you can't say hey chief, you never told me this could happen. i'm down $3,000 and i'm -- hey man, i'm losing too much money and i want my money back. sorry. caveat emptor. now back then when i got started it would have been incumbent upon the broker to recognize that the buyer would know these things could happen. maybe the broker should never have been recommending that stock to begin with. you get the point though. because you can't take stocks back and get the same price because there's no real insurance although you could buy an expensive put option underneath with a cost that lowers the risk of nike pretty dramatically and has to be renewed constantly. suitability is incredibly important. that's why for the next hour you are going to learn how to

measure your own tolerance for variety of factors because these days with digital brokers there's no real protection. just a signed form that says you get it. you may not know what you are getting into, tonight the bottom line, that stops here. by the end of this show you will know what suits you and what doesn't no matter your age or your style. or to put it in other words, caff yet ohm torr. no. just buyer be a little more aware of what you might be committing your hard-earned dollars to when you purchase a stock. let's take calls and let's go to kyle in new jersey. kyle. >> caller: jim cramer, how are you buddy? >> i'm good kyle, how can i help you? thanks for calling. >> caller: so i was wondering -- first of all, i am an investment club member. and this is my third time talking to you man. >> terrific. that's terrific. >> caller: i feel like i know you personally. i love you to death. >> thank you. >> caller: i would like to know how often you look at rsi or

data when you are buying or selling a stock. >> how i look -- at the relative strength index or the back? i have to tell you i look all the time. i do not like to buy stocks where the chart is bad. it's one of the reasons why i do off the charts so on tuesdays, i think it's incredibly important, kyle, because others do and anything that's important to others is important to me. mark in new york. mark. >> caller: what's up jimmy chew? >> what's happening. >> caller: the ira count. we have an ira for my retirement and i was wondering if it's tyke to take some profits and reinvest the profits in my account at another time. >> you know, i prefer you to let it run unless the stock is really sour because i -- i don't want you -- remember, we're informationing for the long-term in ira. and i have to believe that what you saw on the stock is continued. otherwise look if you have to take a loss, take a loss. but keep investing in your ira.

nick in florida, please, nick. >> caller: boo ya. my question, when you help your children invest, is it more important to save up and give them say a big snowball, a big lump of money when they get married or set them up early and take the baby with a small amount in dividend stock to remaize it in such a way. which is more important? the size of the snowball or the height of the hill that compounds it? >> wow, i love that. first i can't help my kids and they have to do it on their own because of my job, i'm not allowed to know what they're up to. i always say look i want you to make as much money as possible with half money and the other half i want you to do index fund and learn some stocks. when they decide what they're going to do with their lives they can do it but that's my advice to them. i don't know what they own. that wouldn't be right. i hope you will know what suits you and what doesn't at the end of tonight's show no matter the age or investment style. tonight i'm helping you form the necessary investment

strategies you need at all stages of your life from young to e. just like the gentleman we just talked to. i'm going to meet you where you are and take you where you need to be. so stay with cramer.

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tonight's all about you. about knowing what you can and can't do because it's not right for you. because it's not suitable. now there are all kinds of suitability considerations in the business. first and foremost, there's age suitability. i want to start with kids particularly babies. [ crying ] "mad money" has been on so long now there are kids who were born who were in their teens -- or and if their parents listened to my best pitch, well we got started. they are going to be well on their way towards some great wealth. parents, grandparents, listen up. you can give all sorts of things to families that just had babies and i want you to open up accounts for them or at least give them some shares of

stocks so that from the moment the earliest moment you can start the process of saving. now here's my commercial for something that doesn't need a commercial. because almost every expert you hear from is in love with them. i'm talking about index funds. which aren't perfect. but they're the best way to go if you want to put your money on autopilot and you can't spend a lot of time looking at individual stocks. just buy a competitive home market. if you just had a kid you can buy some shares in an index fund for them. and i'm partial to cheap etfs because the 500 stocks represent the bedrock of america's publicly traded companies, as a companion i like any sort of total return fund that's an even broader array of stocks. it's a terrific way to start with a mix of both. the broker or site you use might have some fund that's higher growth but you are going to grow a fund and that can be a nice augmentation because you are buying for an infant whose life is ahead of them. these kinds of things can really compound over time

meaning if you let it run, money can build up on itself. now you might say why am i watching the show want stocks? look, i could come out here every night and talk index funds but it wouldn't make for a very good show. i teach you how to pick individual stocks both here but really al huge amount in the cnbc investing club because i believe that's the most effective way to into i like to teach. it's my favorite venue. i think you can build a portfolio yourself that can do better than most managers or index funds and you can control your own money but i'm perfectly sanguine about the notion that it can coexist. i wish the proselytizers of index funds weren't so bad about how bad everything else. i say let's give both a try. when you are saving for your kids, definitely start with an index fund though. what's a good stock for a kid just born? i think if you should pick to kinds of stocks for children. one with a dividend. where you can reinvest the

dividend payments and get the power of compounding. that is such a good thing to teach people. we often hear the term dividend aristocrats, companies that have long histories and certainly more than 25 year of increasing dividends. love them. it's hard to go wrong where the big well run ones. a company like tried and true procter & gamble and pepsico. join the club i mentioned and watch what we do with the childhood trust. at the same time you also want to give your kids something with a little more juice like the great growth stocks of the era. the nvidia and teslas, please suggest going with a uniform gift to minors act account. i'm going to call it ugma for short. okay? the rules keep changing for these but you can gift children money that can accumulate somewhat tax-free over time. again the rules have changed so

much from when i set it up for my kid. they were like trusts that you didn't need lawyers to create. check with your broker for the latest rules for you in the state you are in. they do differ. i think it's one of the better tax breaks around though. i know hunting for tax breaks may not sound very exciting but that's how you take care of the family and besides who doesn't want free money? there's one caveat with the accounts though. if your kid is planning to get financial aid in age and you want to be very careful because the ugma money can count as theirs. one other thought i like. you know i believe the goal is a terrific insurance policy for any portfolio. more about that later tonight but a blessed by me idea is to buy gold or silver coins for your kids. or just pieces of gold or silver. i bought slivers for my kids and from a dealer and pretty much forgotten about them. they may or may not increase. that has are polar opposites. they don't do anything.

by in crazy times when inflation comes roaring back and we now know it's certainly capable of happening, pretty -- since the '80s, nothing that's holed up in value under the scenario better than mansions, masterpiece of art, and precious metals. one caveat. if you do this, remember to put the gold or silver in a safe place please. that doesn't mean under a mattress and certainly doesn't mean putting a hole in the ground in the backyard. a safety deposit box more my style. so bottom line, when a child is born, think about setting up a uniform gift to minors account and put index funds or individual stocks in there. specifically i like cheap etfs that mirror the s&p 500 and on the stock side your kids want to -- at least one dividend stock for income because a high yield stock can double the value of that investment by the time your baby turns 10. you also want one high quality gross stock that you believe in for the long haul. because those can rack up big

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we're going over knowing thy self tonight. how to not just buy the right stocks but the stocks that are right for you. we discuss suit and the essence of what's suitable for the newborns. but what's suitable for the kids? what do you do for them? i think you should do everything in your power to get your kids involved in investing. in stocks. teach them that stocks represent pieces of companies that they might like. [ applause ] now let's be honest. these days most parents probably think they couldn't explain what a stock is to a kid especially a young kid. that's not how i grew up in my house though. as much as i love sports and we even had tickets for the '64 world series. we didn't make it but we had them. to me stocks were supreme. my father had gotten a tip from his brother who knew a stockbroker he played tennis with. guy told him to go buy a company shares in national video. which for all i know would have made it if it started right now

as a facebook live show. but in the '60s it was a total bust that cost our family a fortune. pop would bring home the philadelphia bulletin. the afternoon edition and not give me the sport section. he gave me the business section and wanted me to learn about stocks. i look up closing markets and i tried to anticipate where stocks were headed based on moving averages of how they were doing. straight line this kind of thing. it was a game of momentum and most of the time i only knew the stocks by their abbreviations. but it was fun. i kept the ledger to see how i would have done on tx or ltv or rockwell. a list of companies that have disappeared and still hang out in trade. i also bought a lot of airlinestocks and most kids are suckers. brave enough too. they were household names because of the advertising and of course most people under 50

have never heard of any of those. i got the whole fifth grade class at penn involved and all pick stocks and keep track of the closing prices for week to see who could make the most money. the problem of course is that i was doing the exact opposite of with i should have been doing. what i was doing then is still being done now. backing away from them if their climb seemed overextended or just slowed. instead i should have been picking the stocks of companies i knew and asking my dad permission to actually buy one or two shares along with the money to pay for them which probably would have been a deal breaker. what was wrong and right in the picture i just painted? think of this as the highlights magazine that you always used to find at dennists. gallant first of all would never have taken a tip about national video from his brother. who had taken tip from his tennis partner who worked by the way for the aforementioned company. i learned later my dad had no

idea what national video even did. you can find out more about it via google right now than you could learn from jack the broker back then. national video you see made vacuum tubes for tv sets. in the old days, when you had a problem with your television, it was usually because of the tube inside had brown. of course the technology left national video behind so it went bankrupt and closed the doors about five years after pop bought the stock but it had been going straight down since about five days after he bought it. he averaged down too many times to tell but we had many a silent meal thanks to the days decline in the national video stock. i think we lost most of what we had as a family. there were a host of better stocks you could have picked and most weren't that good but they paid generous dividends. we needed more than anything else was income. me, the idea of picking stocks because they were going up was not like the idea of buying stocks in companies and more suited to dart throwing. at least i picked the hot ones

and many were defense contractors that were getting rich as lbj escalated the vietnam war. for me the game was a lot of fun but looking back i learned the most about stocks from 2, 3m board games. they used to have board games and they were called acquire and stocks and bonds. my father sold games for them back then. it was his job. acquire was all about mergers and acquisitions and stokes and bonds was a fantastic game about accumulating wealth through risky or conservative stocks. they are on ebay. you can see what i mean. these days we have whole fantasy leagues of stocks but few teach you more than that one board game. stocks and bonds. it holds up. now let's go back in time and think about what i could have done differently. first when you are a little kid you play with toys and it would have been natural to buy shares in mattel or hasbro. now i'm not asking the kids to know what it means to own shares in a company in terms of price multiple or even earnings.

it's a way to teach kids a company can be owned by the public and you can own a share in the company too. they know toys. of course the irony should not be lost on my family. can you imagine if my father had bought shares for me 3m rather than national video? we had a box of cheer rows and we could have bought general mills. what a fantastic stock and then there were the really easy ones. go to disney world and it's factor and not how many people sign up for the streaming service that will always drive me back to the stock. the disney laboratory alone should be enough but the theme park i mean come on let's not -- outthink this game. i don't know about johnson & johnson's band-aids and shampoo, but they were staples and they've since been moved to can view. i knew then as well as i know now that kleenex is something you use to wipe your nose and there's a good company. kimberly clark. they're imprinted. finally fast food. mcdonald's is obvious or the

incredibly well run chipotle. bottom line please buy your kids a few shares in a name brand they and you know. then put it away. the stock won't always work out but think of what you liked when you were little or what your parents liked when they were little. you more than likely have a long-term winner and more than likely to great hook to get your which children into a lifetime of investing. madison in texas. >> caller: hi jim. get a guaranteed interest rate of over 5% by purchasing six month treasury bond. why should i invest in the equities market given max conditions? >> okay, because six months from now the rates may be lower and you can continue to reinvest but the stock market is far exceeded longer term anything that you are going to get in a short term. look, i'm not against 5% and i own 5% paper myself. but i will tell you this. you want to take the long-term view and you can buy a dividend

yielding stock that's very good like the enbridge. like a one oak that will have growth not just dividend. no growth on the treasuries. to annie in rhode island. annie. >> caller: hi jim. great to talk to you. thanks for doing the teaching segments and i appreciate it. >> thank you. it's what i got to do. i have to teach more and that's what i intend to do for the rest of the run. what's going on? >> caller: hey. well, ill really enjoy the segments you do on technical analysis. and i have two questions. one, what are the best resources if you want to study this and how much should an amateur investor rely on charts versus fundamentals? even appropriate -- >> great question. look i think charts are integral to your thinking. i think that i -- i really trade larry williams used to google larry williams. his stuff is the best. that's where i learned all the great people we have on have websites. but in the end, technical analysis and i think i have a very good chapter in my last

book. and get rich carefully i spent lot of time talking about technical analysis and it must be done. okay here it so. i have it right with me. this is what my dad sold for a living. can you imagine if he bought this company 3m instead of national video? we might have been able to not have to -- the grape juice. how do put the water in the grape juice and i didn't know why. because we didn't have stocks and bonds. buy the kids a few shares in a name brand. something they can see and hear and touch like i learned with the stocks and bonds game that is available on ebay and believe me, i wish i had the rights and i'd put it out again myself digitally. much more "mad money" ahead. i'm giving you the best investing habits for the restrove your life from teens to retirement and everything in- between. then i'm answering your burning questions with my colleague jeff mars. stay with cramer.

teenagers are incorrigible. the last thing they want to hear about is stocks. they have bigger fish to fry. to which i say so what? i'm not going to tell them what to buy. i'm going to let them tell me.

people watch this show and have been huge beneficiaries of the innate consumer wisdom of my two daughters. we're always searching for ideas both on air and especially for the cnbc investing club and many of the ideas have come from young people. chin, stepchildren. that's why i got behind dominee's so passionately for over a decade before peaking at the end of the pandemic like most other delivery places. stock was at $10 when he became ceo. yes the stuff tasted like cardboard before he reformulated to pizza in 2010. i loved the whole line of advertising but that's not what made this stock a "mad money" crown jewel. no, it was the technology. see, my kids like your kids, hate talking on the phone. they think it's for losers. but old people love them and when my kids discovered the dominoes app they were sold. no talking to people and no nervousness and that's two things that great local joints

couldn't do. and a no cheese option for the vegans? the ones that asked twice about the cheese as in are you sure you want no cheese? i think that's because of my kids. finally there was the joy of paying online before the delivery person got there. kids don't want to fuss with money. all this technology was totally lost to me though. i never minded the phone and was always patient about when the pizza would arrive and in short i was not like the target audience. that's why i started calling domino's the tech company that sells pizza. although now there's door dash. you know the story of how i got religion on apple. roughly 20 years ago, my youngest daughter asked for a second ipod. not because she lost it, as i immediately accused her of doing. but because she wanted one in another color for her. see, they were fashion accessories. she didn't want it to clash

with her outfits. personal computers? i mean, come on. my various employers have never embraced apple but my kids? for a long time, they would rather be caught dead than use a windows machine and only wanted macs. the iphone was more controversial. they didn't want the ear buds but what they really don't want is the samsung. see they're part of the apple ecosystem and much derided and much ignored apple ecosystem with its service charges that make it so they have to pay to store all their millions of pictures. what else? fabulous. google it dad. yeah. that's how i found out about google. now alphabet. and when i got the word from the kids they weren't allowed to google something and if they were involved in at school. just count me in. when i was doing the senior thesis at harvard. doing mindless name dropping. we had access to the the fabulous librarians. their job to look up anything you want. they had to find out things where you didn't know where to look for. my kids get the news from the iphones and the entertainment

from netflix. no, it was not purely their creation. i figured out amazon but facebook like said i went to harvard. when you were a freshman you got a book. it was called facebook and it had everyone's picture in it. it was a derivation of facebook. my kids were on facebook earlier and my youngest got sick of facebook early on because i got on it probably but then she went to instagram which facebook cleverly acquired and kept as something separate. you didn't know it was part of something that older people discovered. i didn't think the ads worked until we had red hot chili pepper merchandise. not an ad. just link. oh lord, is everyone else praying that the ad is just a link but only mark zuckerberghas the forethought to care about the user experience because the ads actually make sense. you want to click on them. how about chipotle. >> the kids love the salad and still do. they're vegetarians. my youngest returned early after the food sickening

incidents the only difference because she didn't take out because she didn't want to be seen inside. nothing is perfect about the picks. but i recommended this stock from the low hundreds all the way to 2,000 largely because they liked it so much. and eventually your kids will age out of the key demographic and however, if you pay attention to the likes and dislikes you can get yourself decades worth of good stock picks. but once they reach a certain age, you need to pray for grandchildren. if you want the freshest ideas. one that picks themselves aren't any good. what if they're earned? your kid like a device that puts on your head and measures steps, i don't know. hey that's the cost of learning and remember, they have their whole lives ahead of them to make that money back. that's the beauty of teen in thing. you can lose it and no one will notice. you pull the same kind of thing later in life and there's real consequences like here for me. for now, you can learn from your teenage children. trust me. s in with them and you will not

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the market? when you get older fewer investments are indeed suitable. not initially though. college costs too much. when i used to be doing my college chores trying to get back in that game i tried to get people to buy a share or two of a stock. but college saps the living dale lights out of you in so many financial ways and i now regard it as a total hardship to even contemplate savings but when you are out in the real world it's imperative you save preferably a 401k plan at work or a self-directed ira. you can pick stocks not just from options chosen by the employer typically with high fees bus that's for another show. that's where you begin the mix of index funds and individual stocks and remember i prefer both. too much risk in individual stocks to just put together a portfolio of names of your own choosing. so at a minimum i'm demanding you put the first $10,000 of saves from the first job into an index fund. yes, my favorite and i mentioned before. now i know that some will argue

with this. i see them argue on social media and i don't care. i know the truth. the possibility of one really bad stock hurting your nest egg is too risky even in your 20s. over the roast of your money behind your first -- after that first $10,000, i do like stocks. and i do want you to be diversified and hey that's why we play it around here when we can. where i try to explain what diversification is in a breezy way. we created the cnbc investing club as an example although the trust has a lot of restrictions to prevent me from using my show. but if you want in-depth work on stocks i frequently mention on this show the investing club is the way to go. i set it up because i always talk about buying and homework. you have to then keep up with it and buy and hold doesn't work. remember back to early in the show when i discuss how hard to do the home work? the trips to the school library

to study months of old research and microfiche. i have had to scrap one of the earlier rogue rules, you know longer need to spend an hour a week of studying stocks. so many you get sick of the process very quickly. you can have articles and research pushed to you along with charts or you can read what we write at the investing club. let us help you do the homework. whatever makes you the most comfortable within your efforts to take care of the money and what i favor. remember i want you to be either a good manager of of your money, or a good client. i don't have a preference. so let's talk about picking stocks as you get older and it is a -- this stage when you need to know thy self in terms of risk. until you get to the late 20s at the earliest i want you to take tons of risks. maybe more than you think you can handle. whether you like it or not, because you have got your whole life to make that money back if something goes wrong. but when you get to your late 20s all i can do is ask you to

think about what you will do in a selloff. you have the wherewithal to buy more or does the selloff sicken you? can you accept the stocks are going down? not a silly question. typically they go up over a period and down that's painful. these are crucial questions that only you can answer about yourself. take more risk and own more individual stocks and once you put away the first $10,000 in an index fund but don't commit more than 20% of the money to speculative growth stocks. getting older i want you to capture more income by owning stocks that pay dividend. a high dividends than the s&p 500 offers. don't start investing for income until your 30s and even then gradually and small. in your 40s introduce bonds to your portfolio and in the old days it would have been heresy

by your 30s let alone the 40s. first life expectancy. the market itself. there aren't always a lot of risk-free fixed income alternatives that don't entail a lot of risk. a high yielding denver send stock rather than 30 year treasury bond that yields say4%. i recognize that most bonds have the noncaveat emptor provision. you can get your money back. as you enter your 60s you can put up to 50% of the money in bonds and take bonds up to 10% more each decade. that brings us back to the notion of suitability. if you can't handle risk if you think stock market is simply not as legitimate as it was once, it is prone to such deep valleys and overblown threats i think you have to decide for yourself if cashing out or taking stocks is right for you and i can't blame you if that's the case. because it has been an uncertain asset. the bottom line, it's your life and not mine. so get comfortable with what

you can live with. but risk at least until your middle years and should remain your best bet. stick with cramer. rylee! from rylee's realty! hi! this listing sounds incredible. let's check it out. says here it gets plenty of light. and this must be the ocean view? of aruba? huh. this listing is misleading. well, when at&t says we give businesses get our best deal, on the iphone 15 pro made with titanium. we mean it. amazing. all my agents want it. says here...“inviting pool”. come on over!

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i always say my favorite part of the show is answering questions directly from you. tonight i'm bringing in jeff mars to help me answer your most burning questions and now

look for though of you who are part of the club, jeff will need no introduction. for those who are not members i hope -- of course i want you to join. his insights and our back and forth help me do a great job and him do a great job for all "mad money" viewers but more importantly for members of the club because this is what we really do. now if you like this, be sure to -- this thing you know. i mean like when you go to like -- i went to -- restaurant. yeah. you have to do it. my kids show me how to do it. first up, i'm older. first up, we have tony north carolina who asks in a losing position, what's the difference between being stubborn and taking the loss and then revisiting? this has a fundamental question. in the end what a lot of people confuse is taking a loss. day you take a look if you find that the fundamentals are deteriorating. you don't take a loss because it's like -- you can't take it anymore. so i think that this notion of a losing position if it's a position where things have changed, you should have taken it. we have made the mistake at

times of not identifying that there are changes at company but we don't like to view a company as a loser or winner and a stock as a loser or winner because some of the greatest picks have been losers. >> sure, there's broken stocks and there's broken companies but you have to identify is that if the issue at hand is a structural issue at the company, structural issue at the -- industry level. then that -- you are being stubborn if you hold on for too long. but it could present itself to be a great buying opportunity if you stick with it and the company is able to fix itself up. >> we've had those m of those over time. now we're taking a look at some of our -- of your mad mentions. so let's go to isaac who says jim bo. jim bo, my old family loves your show. thank you. i don't think i bought or sold anything in the past 30 years without checking to see if you said anything about the stock. now, this is what i love. see, isaac uses us as ce. one of many resources.

i have never claimed to be the seer. i have claimed -- and by the way, someone stopped this morning and says you are a great intertiner. i like to entertain to bring people inment not just a great entertainer but what i would point out is that i want you tocheck. you should check. maybe we've said something. we're input. that's what we are. are we with the input? no. but we are an important input i believe in making stock decisions. >> yeah. absolutely. it's -- doing the homework is showing you how to do the home bork so you at home don't have to. >> right. >> you still have to. but it's a guiding hand. >> look, i always -- say if you want -- that there are people -- lot of people say just don't own index funds. i disagree with that. always going to be people that want to own stocks. be a member of the club, you will be much better at it. next up a question from rh nell florida who says hi gym. we have a 30 year plus time rise and we inherited some

money we don't need to live on. do you advise 25% of the money into s&p and stocks and bonds? this is really important. 30 year plus time horizon. stocks, yes. bonds? no. you don't need bonds until you get very old. this is one of the points where i -- am definitely at odds with most of the so-called seers out there. i say that when you buy a lot of bonds, you are betting against your life. if you think you are going to pass away, and when you are -- 72, then it's 65, yes. buy bonds. i want people to think you know, i think that sounds almost polly anna. but the reason why i say it is because if you have to go into a long-term care facility, and you own bonds for the previous 20 years, you are not going to have enough money. stocks historically outperform bonds. >> the key line too, you are fortunate enough where you don't need to live off that money. that means you don't have the risk of selling it in a

potential market downturn. you can stay invested in the market. and over time, you should do quite well. >> i know -- look, i think that when you -- it's really a trick question because people don't really like to talk about mortality. but what really does matter is is that if you have a long life and you have cashed in on bonds in your 50s and 60s you are going to be broke. you will be broke. as long as you take that horizon, you can ride things out with stocks and i think you outperform bonds. next one -- we're going to larry. also in florida. who asked hi jim, can you touch upon the suitability in general on long-term treasuries for retired investor specifically now as rates may soon start to decline and offer appreciation? now long-term treasuries are offering a very bad return. well under short term that's called inverted yield. i would prefer actually to see you in the -- utilities. and i say that because i think the treasury -- think i you end up losing money.

you lose money. >> look, another way to go, cash cows. dividend paying stocks. you can also -- >> much better. >> they provide -- >> we can come as well. we have to stick with the stocks for long-term. anyway, thank you jeff and i like to say always a bull market somewhere and i promise i would find it right for you here on "mad money." i'm jim cramer and we'll see you next time. account down for trenton. another self driving technology getting shock safety review. retail crime running wild we take you to the exclusive inside look at the shadowy world that is stealing billions. the special tuesday edition of make it with the ultimate side hustle, whatever your background. all that