About. Serve eagerly anticipating why . When the vast majority of investors agree something is going to happen that, is priced into the stock market. The real economy moves at its own pace, you got to broer money to build out equipment and use that equipment to manufacture goods and wait for the cost to buy them the stock market has no such limitations. Stocks dont travel the speed of light. Well, how about the speed of thought . They come close. So they decide the economy is slowing or speeding up or flat lining stocks start trading like thats the case. Instantaneously. Usually takes some time to build that consensus which is why you rarely see the moves happening all at once. But once the big institutional Portfolio Managers are on the same page about something, you can be confident that its baked into the averages. I say that week. It will happen that week economists take an ivory you to area proech to the discipline. They have models for how the world is supposed to work. Also they can be very boring they rarely let the facts get in the way of a good story. The data conflicts with the model, economists have a bad habit of throwing away the data, not the model. One of the concepts is known as the efficient markets hypothesis stock prices already reflect all the relevant information in the universe that is out there at that moment. And when some new piece of data comes out, stocks immediately adjust to reflect the new reality. Youll often hear index fund purists saying why it is impossible to get any edge whatever you know about a company is already baked into the share price. Cant get an edge. As far as theyre concerned, markets are efficient. They invest in individual stocks and gamble if everything you know is already priced in in, that means the home work is meaningless and the only thing you can push a stock higher or lower is some new piece of information that nobody knows it has to be something totally unknown. If anyone did know, they would have already acted on already. Ergo would be built into the share price. Index fund advocates adore the hypothesis its impossible for individual investors to consistently beat the averages so if you want equity exposure, the smart way to do it is by putting your money in a low Cost Index Fund that mifr mirrors the spp s p 500. I have no beef with that beyond meat, beef, whatever i have no problem with the index funds. Theyre the best way to invest the market i said that almost since day one of the show. S its hard to be a individual stock investor but its easy to be an index fund investor. Index fund territory can you contribute over time with every paycheck. The u. S. Economy keeps growing over the long haul can you leave that money in the index fund maybe once or twice a month. They can use the ira for stocks. But get back on track, this idea you cant possibly beat the market because efficient market hypothesis tells us the stocks are valued the averages nearly every year at my old edge fund. Given my clients annual return after all fees over the course of the years and markets are not perfectly efficiently. Theyre often irrational they ignore things and make mistakes and disvalue information every single day that is the main reason you can make money while picking stocks. Theyre good for the portfolio it doesnt necessarily work. So the markets hypothesis is such a bone headed idea. Even if it is not streaking empirically, the markets are inefficient. Its still a very useful idea. The iron clad rule of the universe, it can help us as a rough guideline, they can meet us in the right direction they aspire to efficiency. They report a fantastic quarter, they will will spike that can get baked in very quickly. The Federal Reserve changes policy, they wont be raising Interest Rates as previously planned. That is huge news and takes longer to bake we found out the end of 2018 the fed got cold feet about the policy that is weeks and weeks. And there are a lot of them. Instantly soar but it can take days or weeks or even months. And theyre normal it takes time for Portfolio Managers to reposition they have too much more management theyre not going to buy or sell all at once. We do reach a new equilibrium call it a corollary. There is a consensus about anything, be it positive or negative, you have to assume that it is already being discounted by the market so when everyone is feeling euphoric about the strong job market that, is baked into the stock market already theyre worried about the slowdown, its probably baked in when investors are hunkering down in fear of a bad earnings season, dont expect them to get disappointed numbers theyre already into disappointment when all the talking heads in general and media friendly managers are telling you to be afraid of the same thing you dont need to be afraid. Lit everybody else worry for you. From the stob markets perspective, the fact that most investors believe something is going to happen means that in a way its happening already its so easy to fall prey to the group think. When you see all sorts of experts coming on television and saying the same thing, the newspaper is printing similar stories and your friends echo this stuff back you to it is natural to assume it must be true. You no he what very often it is true. But that doesnt mean its going to move stock prices by the time we get any kind of real consensus on an issue, that move is probably over. You missed it. Bottom line, you want to be a better investors, dont tear your hair out fretting about everything else. Instead you should worry about the things other people dont seem to care about, because the real threat is the one you dont see coming dave in virginia, dave caller hi, jim how you doing . Im doing well. I was born in Plymouth Meeting and i was raised in summit oh, my were dop will gangers i love that. Yeah. Caller we want to leave half our assets with certain minimum amount to our two children and retire on the other half they were both in their mid 20s. And we will adjust our lifestyle if we have to in order to leave that minimum now most Money Managers will say that at our age in a normalized Interest Rate environment we should be about 60 in stocks and the kid should be around 85 . So without setting up new trusts, we invest the minimum amount as if it were their money now and if so allocate stocks hatch at 60 and half at 85 i think the 85 all in for younger people is definitely right. For you, assuming youre my age, i think 60 to 65, were going to go longer than the actual table. I prefer always to put a little bit more stock in there than most think st if it you want to go 90 for 20yearolded, i would bust that too. We have to have the long assets in there to make a lot of money over the time. Thank you for the kind comments. Frank in new york. Frank . Caller yes, jim. Thank you very much. This is first time, long time. I like to ask you, what is the difference between general stocks and overthecounter stocks they used to be different they were done by different with my day when i was at goldman sachs, we had had overthecounters different from the listed these days they blended. I wond worry about it. Stay focused on the fundamentals listen up, dont sweat what theyre all sweating Pay Attention to what others are ignoring mad money tonight. To trade or not to trade that is the question ill tell you how to come out on top by pointing the different ways to approach investing then feel like the markets speak different language ill tell you ho you to decipher hidden messages in the tape. And the next time you see a hot ipo, well, should you consider buying the company or not . Not so fast. Ill tell you why. Stay with cramer dont miss a second of mad money. Follow us on twitter have a question . Tweet cramer madtweets send jim an email to madmoney tmadmoney cnbc. Com. Miss something head to madmoney. Cnbc. Com. [spokesman] if youve tried college but never finished, group cheering snhu lets you transfer up to 90 credits toward you bachelors degree. [woman] it doesnt matter how old you are, you can do it, you can finish. [spokesman] finish your degree at snhu. Edu i told you before the break, when you pack into a crowded trade, youre playing with fire. If everybodys on the tame page about a stock or even a whole sector, that means the easy money is already been made, people doesnt mean you cant profit from something obvious that does happen but when youre late to the party, youre going to have lower returners and higher risk. That is the nature of the beast. Nobody is putting a gun to your head that is terrible, right . And following the hedge fund you dont have to think about spotting tops and bottoms if you dont want to. There are a lot of different ways to invest some take less work than others. For example, there is timing you can try to call every jie rags in every average, okay . Buying stocks when they look poised for a near term bottom then selling when they look topee. Can you take a large holding and lighten up on part of it when it gets overextended and buy it back when the stock sells off. Keep your battle on your shoulder waiting for the Perfect Moment where the whole market sells off dramatically give you a chance to buy the favorite stocks for much p less than theyre worth back during hedge fund, i love doing this stop. If you have the time, inclination, resources, its a great way to try to make money if you have a full time job, this approach is lunacy regular people who work for a living dont have time to stair at the tape all day. St if you work the night shift, its not a good use of your precious free time more importantly, its not worth the agitation. Thats why i come in here every night to do the show i focus on the market like a hawk so that you can take a less intense approach to investing. One that lets you go to work and have a personal life how should you approach the market what is the safest way hand to will individual stocks part time for starters, let me just say, again, that index funds are wonderful thing. Wouldnt it be great if everyone says dwoent li dont like index funds if at any point what im describing sounds too daunting or too time consuming, dont hesitate to say individual stocks are not for me. Throw your hands up. Just put most of your mad money, the cash you invest thats not part of your retirement portfolio into a nice low Cost Index Fund or etf that mirrors the s p 500. I tell you this is a lie i tell you this a lot. Its good advice being a savvy stock investor takes work being a savvy index fund investor, it is easy or relatively so sure, if you manage your portfolio well if, you do the home work and stay disciplined, i think can you beat the s p 500 with diversified group of stocks ive seen it happen hundreds of times. But not everybody has that kind of time. Not everybody has the temperment and comfortable taking one morris to being chase a higher return thats perfectly fine. You need to do what is right for you t so keep that index omptio in your back pocket. Lets talk about how you can do that without the market taking control of your life and just constantly living in a ball of worry and confusion. First, from the get go, accept that the best is enemy of the good there is no point in trying to buy or sell stocks at the Perfect Moment nobodys that talented even making at tempt will make you nuts accept results that are good enough rather than trying to chase perfection for example, if a stock you like gets hammered down from 60 to 50 and then pull the trigger then down another couple points before it bottoms and rebounds to 60, dont kick yourself tore making a mistake you could have made a couple extra points but swan waya swin a win i dont believe in buy and hold. No wait a second. Cramers breaking the orthodoxy . No i believe in buy and home work buy and hold to me is reckless buy and home work is prudent meaning, you need to keep researching your companies after you own a piece of them. If something goes wrong, terribly wrong, you have to bail i think its good idea to buy stocks slowly on the wait down and buy them on the way up all that requires a certain amount of active management. Dont be compelled to be too active the last thing you need is to be in and out of stocks with every jie rags of the Broader Market i dont want that. You want to be an investor, not a trader you want to invest in things in and out. Most gains occur in concentrated bursts and libel to miss them if youre on the sidelines. If you have the time and inclination to trade, thats great. However, monthest people dont when you got a full time job and youre trying to manage your own portfolio, you have to be willing to sit tight there will be selloffs there will be rotations out of one group and into another there will be crazy action on a week to week and even day to day basis. You dont have to constantly adjust your holdings based on the moves. Thats wrong if you believe in the stocks you own and shouldnt own anything you dont believe in, just sell them then you should be willing to stick with them when the backdrop gets tough. You cant just bail. Ideally, youre able to trade it out. Like i told you, the best is the enemy of the good. Dont chase perfection in practice, when everybody is panicking, youre going to be tempted to just sell everything. You might even avoid a substantial decline by bailing on a stock market. But sooner or later, you have to get back in. The whole point is side stepping decline is how to sell high and buy low. Unfortunately, its relevant yea hard to nail the timing here if you dump everything, there is no guarantee youll be able to buy your stocks back before something changes. And the market comes roaring back suddenly you saw in the spring of 2019 after fed chief jay powell told us some rate cuts may be on the horizon. Wow. Okay that would breathe new life into the economy. So what is the solution . If you dont want to give yourself a pan ache tack every day, keep doing the home work so you know what you own. When your stocks surge higher, use that opportunity to ring the register on part of the position and raise some cash. After 20 move or more, you need to take something off the table. That is my iron clad rule. A Little Something okay put that kosh to work buying more shares at lower prices. You dont have to nail every short term top and bottom. That is too hard bottom line, to trade or not trade . That is the question if youre trying to be an investor that doesnt need to stair at the tape all day long, its nobler in the mind to suffer the slings and arrows of outrageous fortune you dont need to be perfect at managing your money. You just need to be good enough. You dont need to anticipate every jie rags in the market its too difficult and will rarely prove to be worth it. Lets speak to ryan in new jersey ryan caller hey, bua, jhow zmoug doing good im looking to invest my first 20,000. Im wondering what to do with the other 10,000. I dont have time to do home work i wonder if its a good move to go with index fund and etfs . If you dont have time, you must i dont want those small sector etfs. I prefer total return fund that has all sorts of stocks or a fund with a high growth. I dont want it sector by sector they tend to not make people money because people buy them high and sell them low r riley in georgia. Caller faulk fthank you forg my call. Youre the man what percentage you would recommend of going portfolio either physical gold i think 10 is fine i know that its been terrible but, you know, you just like insurance, you know, you dont want insurance to pay of o, do you . Its insurance and nothing else all right. Dont try to anticipate every jie rags of the market just do the home work on what you own. There is much more mad money ahead. Nothing generates them for the market like a newly minted proceed with caution the next time you see a Company Coming public be at the right place at the right time is essential in investing. Im showing you why. First, hear that its the tape talking. Ill help you separate the signal from the snoiz noisnoiseh cramer you should be mad at airports. Excuse me, where is gate 87 . You should be mad at nonseasoned travelers. And they took my toothpaste away. And you should be mad at people who take unnecessary risks. How dare you, hes my emotional support snake. But youre not mad, because you have e trade, whose tech helps you understand the risk and reward potential on an options trade its a paste. Its not liquid or a gel. And even explore whatif scenarios. Wheres gate 87 . Dont get mad. Get e trade and start trading today. The stock market talks to me i mean that figuratively, not literally. Contrary to what you may have heard on twitter, i dont hear voices periodically i think athat my left mole ar crown does play some music but thats what were talking about. Im constantly listening to tape to get a read on the big institutional Money Managers are up to. And to do that, i need separate the signal from the noise. What i do mean from that on any given day, there might be monster moves in individual stocks the swings are all significant when you see the cloud stocks get killed, forget about it. The natural conclusion to draw and something must be wrong with the cloud. Well when a really low group bounces, its not a stretch to assume that pain is not over but thats just too easy, people the truth is some of the moves are a signal and some of them are noise. It tells you the stock will probably keep moving the same direction. Noise on the other hand is, noid to borrow a line from one of my favorite characters, macbeth, noise is a poor player that struts and frets his hour upon the stage and then is heard no more it is a tale told by an idiot full of sound and fury signifying nothing in other words, while single carries the message, there is no take away from noise shakespeare would have been a dynamite investor. Distinguishing one from the other is much an art as science. How do you tell major stock swings something larger or should be ignored . Before we get into what makes a move meaningful, you need to understand we get major single day advances and declines with no significance all the time good stocks with get ahead of themselves rallying too far, too fast the technical term is overbought the measure with the slowest oscillator or the williams percentage we talk about these on tuesday onz off the charts. When youre overbought, everybody wants the stock at a given level and already purchased it the highest Quality Company have a overbought stock you almost always get a pullback but this overboard selloff doesnt tell you anything. Other than the fact that the stock in question needed to take a braejer and digest the gains at the same time, even bad stocks can rally and for similar reasons. If they get oversold because theyve come down too quickly, you need to get a nice oversold bounce once again this is the rally that doesnt convey much information. Its technical its noise az stock got oversold it bounced and unless Something Else changes, kit go right back down after it works off that bounce you see that head and shoulders and down with some ridges. I bring this up because when you see dramatic swings in digital stocks, you will try to draw a conclusion that connects to the fund ales the real world faction about how the june lying companies do it sometimes that connection does exist. Sometimes the saction noise. You end up feeling foolish if you take the cue from that action those that want to know more about this can go back to the cannon on stock markets right here st wow Early Release no doubt confessions of a street tells all where i describe how it is to see a stock move a point and convince your several something is moving underneath i describe a move of a point you will love it all that really happens is you have more buyers than sellers at any given moment in a way that is totally unrelated to the actual company. Disturbing, dont you think . Of course its not just the technicals pt there are plenty of other reasons why a stock might explode higher or melt down and have nothing to do with the f d fundmentala at all they told us they are acquiring data for enormous period in an all stock transaction. First the pin action from the tabloid deal was very positive investors figured that all the other cloud place may be potential takeover target too. Service now, workday, adobe, cooper software, octa, zen desk. They were higher on ram pant takeover speculation however, the very next day the cloud stocks came right back down i mean they were really obliterated because surprise, surprise, the sales force tabloid tieup is more of a one off transaction. Sales force needed a Data Analytics platform and they agreed to pay such a huge premium. Cloud and analytics, well, sales force wanted them. They realized the other cloud plays were not going to be bought the stocks plummeted oh, brutal day once again, it meant nothing the only take way from that is they should have never been up in the first place so what carries real information. How do you know a big move is foreshadowing something bigger there is a lot of signal that is obvious. The Company Reports a blowout quarter and the stock, of course, obvious. Analysts cuts estimates. Stock plummets obvious. Thats just business as usual. Its why i like to look at the unusual. The company catches an analyst downgrade and the stock goes up, interesting signal counterintuitive in my experience when a stock refuses to go lower on bad news, it means that stock is putting in a significant bottom and it is ready to rocket higher. I like that by the same token, when they report a fantastic quarter and bullish Conference Call and the stock gets slammed, oh, boy. Sell, sell, sell, sell it means wall street believes this company is looking at the last good quarter. That happens very often. When the stock falls on positive news, i have to tell you that, is the definition of a possible top. For the most part though you cant decipher hidden messages in the way stocks are trading. Except in some rare cases you probably shouldnt even try. Its important to know what is working and whats not working in any given matter and any given market but you cant let your Money Management decision be completely guided by what is in or out of style on the wall street fashion show. Others wi you end up owning stocks because theyre going higher oh, thats a terrible place to be because you dont know what to do when they start coming down the bottom line, when youre evaluating a stock, take the cue from the fundamentals. Dont put too much significance on day to day jie ragss and share price. Sometimes can you extrapolate a great deal from a big move in an individual stock but more often its telling you something you already know or its just noise. It Means Nothing lets go to dell in florida. Dell caller boo ya, cramer. In your book real money, you say a company doing an in the hole secondary is not one you want to be invested in so im wondering, is this rule without exception or are there circumstances where its okay for a nat yet profitable dmop do a secondary offering and expand while they can if there is a particular piece of news driving the stock up and really positive news and they do a secondary, i might get behind it on a little case by case but typically, im just im suspicious im critical and thats the way to play it. How about aditha in ohio im a loaning time listener i appreciate you taking my call. I love it whats going on . Caller you always suggest owning index funds in a portfolio. Absolutely. Caller my question for you is two part. One, what percentage of my portfolio should be in index funds versus individual equities and number two, you also suggest owning index funds that track the s p 500. Do you also suggest you should own sector related index funds in addition to a general s p, for example in health care . No. I dont want sector related. I think those are wrong. I want the full plate. Thats why like the s p 500. I think it sure be 85 to 95 index fund the rest is mad money individual stocks can you make a lot of money n index funds are the bedrock. I wish it werent the case i have to be worried too i think individual stocks with a lot of home work can make you more money though. All right. Fundamentals matter. There is much more mad money. Im offering a word of warning for the next time we see a big wave of ipos you dont want to miss this then you may want to do the right thing. If its for the wrong reason, it will cost you. Ill explain im taking your questions tweet by tweet send them my way with madtweets and stay with cramer all night im warning but dangers of ache follower when everybody expects the same outcome in the stock market, there az good chance it wont play out as expected it is already priced in had. Thats you need to be extra weary of the ipos. We have seen this pattern over and over again we get the new deals many of them explode higher, terrific at the same time, theyre flooding the market with new stock supply and that supply drags us down. I said it a million times. The stock market is like any other market its all about supply and demand too much supply and prices are going to go lower. The problem is when ipos are making people fortunes, you no he what . You tend to get a palpable sense of exuberance. Then when the deals start attracting less interest, exuberance turns to hostility. Then we get slammed. A deal worked very well and then gave lift to uber and lyft they burned the initial public investors. Once they started souring on the pios, that was a brutal month. It didnt help that President Trump ratcheted the trade war with china and the pain didnt last, it is something you could have avoided if you listen to me, ranting and raving about how the massive uber deal would be like an albatross around the markets neck what makes the ipo psych sol dangerous . Look back at 2014. That is the best recent example of what can go wrong in the First Quarter of 2014, the market was overwhelmed with a wave enough deals in two particular industries. The Cloud Based Software stocks as the sass and service and the biotechs now in january, february 2014, these newly minted software as a Service Stocks and biotechs kept roaring higher and higher. The ipo floodgates opened, i started to get concerned you see, in a real bubble, the kind that can devastate a decent portion of your portfolio, you get a slew of Public Offering as people try to catch in on the euphoria of the Public Markets its natural the companies tend to decline in quality. And near the end of the move, were scraping the bottom of the barrel by the way, thats what we saw play out, you know, in the big one. In the big one the Technology Stocks of 2000. Tons of dotcoms try to go public they did the same thing. Of course we had had a lot of secondaries. Those were bad thats why i came out and warn you about the dangers of ipo mania. There is one way to have a bull market and that is by flooding with supply. When they come public, we get a glutton in the stock market. They have to sell the Older Software to raise cash to keep the fresh face ipos. I also warned you that eventually this ipo bubble would burst. Sure enough the bulk of the stocks that came pub flick 2014 with huge spikes ended up losing fortunes in the after market and took many of them years to recover. You had to be very selective at the time most of those stocks were coming public with incredibly stretch valuations even as they didnt have any earnings and some cases didnt veen a even have any revenue. The actual winners were few and far between. Thats what happens with ipo overload and always happens like that even the best cloud stocks came public, the wubz that are now cloud royalty took a long time to bounce back from that ipo overload hundreds of really low Quality Companies that came public in the 2000 era went bankrupt 2014 was not nearly as bad it caused a brutal down turn we saw the same thing in 2019. Sure, this were winners like beyond meat, zoom video. But for every ipo that worked, there is one that fell out of style with the wall street fashion show uber, lyft and most of the chinese ipo which are always extra risky. They dont have the same rigorous standards that we do. The other problem, when Portfolio Managers get excited about putting a lot of work in ipo, they sell Something Else. When there are lots of large deals, they have to do a lot of selling. Companies tend to become sources of funds if you believe youre going to make a killing in an ipo, you dont really care how you raise that money this leads to Fund Managers desperate to raise cash which means dont care about being disciplined. Thats helped fuel the market wide weakness in may of 2019 right around the huge uber ipo just like did it in 2000 and in 2014 remember, the bulk of the new money that comes into the market goes into index funds and they cant participate in ipos because the starks arenocks aree indices yet. They participate in the deals in the aggregate, dhoent have enough cash coming in over the transit to get into all these big deals without selling something first. So the next time you have a big wave of ipos coming, remember that it pays to be cautious when the ipos come hot and heavy. Bottom line, as much as i love ning that generates enthusiasm for the stock market, you no he that, nothing does like ipos, you have to be extra careful when we get a whole wave of new issues the cycle tends to start out strong and generate euphoria ben it burns out and all the in you stock supply can weigh on the market keep that in mind the next time you get excited about a bunch of red hot deals when you think stocks, you need to be careful about doing the right thing for long term. This happens more often that you expect lets say you fund a great company, strong fundmentals. Its natural to conclude its going up for all the reasons you like it in the first place that is not always true. You may think wayne is a win its more complicated than that if you dont understand why a stock is it moving up or down, youre probably going to be very confused when it stops doing that and goes in the opposite direction. And when were were confused, we make lousy decisions. Maybe you want to buy some clorox or Procter Gamble there are lots of logical reasons to like both like i told you earlier, logic is rarely what drives the stock on a day to day basis. So suppose you pick up clorox because you really believe in ceo ben owe dur and his team but you like the dividend. And the growth of the dividend you think that plastic and fuel costs are going to go down which will boost the companys growth margins. You buy the stock and it explodes higher. What is next you have to ask yourself why it rallies. Its easy to say i nailed it this market is finally giving clorox the credit it deserves. The when you fwi a stock and goes up that, means you were right. Why you would second guess yourself when youre right because maybe you were just lucky. As i told you before, its better to be lucky than g so when you rack up a nice win in a closhg off or a proctor, you need to ask yourself if you were right or if you simply had to be in the right place at the right time what do you mean the right place right time rotation, rotation, rotation there are times when the consumer package stocks roar higher for reasons that have nothing to do with the Underlying Companies theyre recession stocks because theyre earnings tend to hold up during a slowing economy, their stocks roar when we get lousy Economic Data if you buy the stocks because you believe in the business, then they go higher as part of a sector rotation that, has nothing to do with the business. You still have a win the bank isnt going to tell you cant take that money because they dont accept profits from rotations. But you dont want to get caught with your pants down because the market suckered you into believing the clorox was going up based on fundamentals when really it is ben fating from rotation this is what i meant earlier about filtering ow the senate from the noise its really hard to do because of confirmation bias when you have a thesis and evidence seems to prove your thesis correct, the natural thing is to believe you were right all alovenlgt you should approach that feeling with skepticism maybe youre right people are right about stocks every day. But maybe its a coincidence and you should ring the darn register before the coincidence goes away. Heres the bottom line very helpful to understand why a stock you like is going up or down when you have a win, dont laysly assume that simply got it right pt think about what means if you were merely in the right place at the right time. And proceed with caution stay with cramer you know i love hearing from you. So lets take some tweets. First we have a tweet from amy she says thank you for the shoutout on the show tonight my hubs and i have big news. Much what is the first thing we should invest in for our first child . Some say a College Saving plan is first madmoneyfanontheway gift to minors i think you can goist minors is a great way to put money away. Add a stock to the mix only to teach a child what a stock is. Heres a tweet from steve radly who says hey, what if you start buying into your position but the stock jumps before you bought your entire position . Do you still keep buying no st thats what is called you missed it. But its a high quality problem. You bought some stock. It goes up and you sell it its a shame i know we should always we dont want to buy and then have it run away from us. Thats the big flaw of buying in my plan. It happens if it thats flaw you made money, count me guilty the next tweet jim, huge fan. The first grandchild was born in november we plan to continue to buy gold on his behalf we would love one or two long term growth funds you recommend that we might start him off w then im going say, look, mcdonalds, disney, mcdonalds, some dont like the fast food, whatever but its where you take him. Thats why i think it just happens to be the case maybe youre the veegian that never lets it happens. I want kids to understand what they are very to buy something that resonates in their life. Maybe you love pizza dominos. Here we have a tweet from bender forest esq who says i heard you talk about your father many time over the years and the love in your heart for him is always evident. Im sure you was a very proud father my father worked very hard all his life he worked until he was 92. He passeded away he workeded even the last month before he died he instilled in me an attitude of lets just say toward as long as youre honest, things paid off for this country. Thats what he said over and over and over again. Honest and hardworking people get paid off in this country i believe. That i no he that such a thing as luck. But he instilled in me a desire to work really hard and here i am all right. Next up, we have a tweet from john who says that mad money on cnbc im a grandfather of four. You lucky guy. I have the ability to do this. Is it a good investment idea to give my grandkids all under 10 about 5,000 in solid funds such as russell 2,000 indlechl . Youre the man thats exactly what you should do that is going to pay off forever your grandchildren our next tweet is from crhr 1. He says cramer gets a call out in every show. Dont forget the people that i like who also follow your every move from here in the hash tag devoted fans all i tried to buy land in canada once i wasnt able. To drives me crazy to this day because i love canada so much. Youre our best friends and we, americans, will never forget stick with cramer. Were carvana, the company who invented car vending machines and buying a car 100 online. Now weve created a brand new way for you to sell your car. Whether its a year old or a few years old, we want to buy your car. So go to carvana and enter your license plate, answer a few questions, and our technowizardry calculates your cars value and gives you a real offer in seconds. When youre ready, well come to you, pay you on the spot, and pick up your car. Thats it. So ditch the old way of selling your car, and say hello to the new way at carvana. High protein. Low sugar. Tastes great high protein. Low sugar. So good high protein. Low sugar. Mmmm, birthday cake pure protein. Find our coupons in sundays paper. Im opening the lines to hear from you, the voices of cramerica. I want to talk to you. Of. Mr. Cramer, i just want to tell you, you are absolutely, positively fantastic thank you for helping us not panic in times like this the average investor which we all know and love, you cater to us we appreciate that for all you teach us i am not going anywhere shouldnt either well get through this together. Cramer has your back. Call 800743cnbc and lets take on the market together. Well figure this out and puzzle it over and make it so that were all smarter i like to say there is always a bull market somewhere. I promise to find it for you right here on mad money. Im jim cramer and ill see you next time narrator in this episode of american greed. John fox makes millions selling fine wine and lives like a classic rock star. Every day, john would come to work in a different car, a different fancy car. Ferraris, maseratis, multiple mercedes. Narrator foxs customers are enticed with low prices, and they ignore the financial hangover to come. Stay away stay away narrator fox, too, is reckless. He steals clients money and spends nearly 1 million on scores of women he meets online. I think he was definitely a sex addict