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Prices for the redemptions. This has roiled through this high yield space, as Many Companies have gigantic amounts of debt. They took on durg the days of easy, cheap credit in the housing days. Those days are over. And these junk bond funds, particularly the mutual or open funds, are proving to be disastrous investments. I urged you is to sell the stocks of any companies that are borrowing money to pay their dividends, which is the case of many of the oil companies. Now im including a mustsell for any mutual fund where you are risking your principal to grab a little extra yield. A mustsell. Ive urged you never to reach for yield since the show began. I am reiterating that admonition lets go to next weeks game plan. First, well be on the lookout for more stories about Mutual Fund Redemptions just like we had today. Theyre going to dominate the headlines, because Financial Advisors all over the country were calling their clients all day today, urging them to sell junk bond funds so they dont get shut out the way third avenue management. Thats why i think monday could be a pretty ugly day. No. Im a peacenik these days. Tuesday we get an Analyst Meeting from a total cramer fave, 3m. It surely needs a better World Economy than it has right now. I keep it in my travel trust, which you can follow along, its paid a nice dividend forever and its constantly redeeming itself. Some stocks you have to take for long term gain. Theyre not many that i believe in like that. 3m is one of them. The fed is poised to raise rates for the first time in nine years. If its acmpanied by a statement that says were ghtening, then we can have a reli rally but if its artfully worded, youll see selling, because while employment is indeed robust, oddly enough, pretty much Everything Else isnt. You know me, i follow a gazillion industries. I cant name a single one thats doing better than it was six months ago. W plus we know that weak and emerging markets are weaker still. Weakest of all is high yield debt. Again, were worried about Mutual Fund Redemptions of high the selloff we got today will continue, because higher rates hurt emerging markets more than anything else out there. Or, as i would put it off the desk, its a very suboptimal situation. After the close wednesday, im going to listen to fedex, because the Company Gives a good world view. Plus who would be a better arbiter of World Business . Be maybe ups . How is fedex going . Well find out. I bet well be less than enthused, because the world is slowing. I know all the people say the fed has to raise, has to raise. Youll get your wish. R if we get a big selloff on wednesday after the fed decision, then you might want to buy, near the end of the day, a couple of stocks near the close that i really like. Accenture and General Mills. Both of them have been putting up excellent numbers, really the General Mills is going more natural and gives you good yield. U i think maybe you use a bad fed statement to pick some up. We also hear from delta in an analysts meeting. Lately the airlines have become hard to own because terrorist fears combat travel. Not to mention the usual strong dollar woes, people who europe who want to come here. Eu i think delta is going to have decent things to say. But i wouldnt look at it as a buy, unless it was clobbered by a fedinduced selloff, although its at the cheapest its ever been on essential. T i want you to be careful if you own boeing going into the delta meeting. Delta has been prone right now to talking about a glut of widebodied planes. And thats not encouraging. The work i did this week, delta is right. Have fascinated people. First is blackberry. I dont care for the company. I favor subscriber bases that are robust. Thats not the case here. Then lennan. Then darden, which is also of course olive garden, capital grille, im giving you its blessing. If the stock falls below to where it yields 4 , i am definitely not sanguine about the stock market. All week ive fought against trying to be too bearish. But after yesterdays spike, it is time to do some selling if you havent locked in any gains. Im concerned about this High Yield Bond Fund debacle. Im worried about a fed rate hike. D someone might say, oh, jim, thanks for nothing, its down today. Really, stop complaining. Thats why i recommend locking down some gains and raising cash. You might need it. Bobby in florida. Caller thanks for having me on, jim. Youve helped me for years, drawing the line between trading and investing. Caller what are your thoughts on halliburton as an investment long term, after their baker hughes transaction . Im not positive about halliburton. This deal is going to cloud things. Buy schlumberger, which is all the way down within 2 points of its low. Again, we dont know where oil is going to stop since opec decided to pretty much end itself, thank you saturday. Danita in illinois. Caller happy holidays, jim. Same to you. Caller thank you. I have a millennial son who has a little of apple and a little he wanted to know about microsoft and salesforce or netflix and comcast combo. Its something we do together. Im glad you say millennial. A millennial person will be more interested in sales force. Its a very High Growth Company that doesnt pay a dividend. Microsoft is a less growing company, but very good, that does pay a dividend. The younger person should be drawn to sales force. The older person should be drawn to microsoft because it has a little more Capital Appreciation and preservation. Ti thats the way i want to split the difference. For him, its crm. Listen, i know it is tough out there. Today was really ugly. I had a hard day. I dont know about you. Even though it was kind of nice out. Aybo but i am here to help. And i am suggesting locking down some gains. Remember, we were up big yesterday, raising some cash. Were still very close to the highs. Dont say i didnt tell you at the top if youre just a couple tonight im going to the mattress. Not really. Stay tuned. Any of the purveyors of the plush, well see if theyre worth owning. Then, a meal ticket out of chinas middle class. Is yesterdays spinoff good news . Plus two of corporate americas oldest institutions and they just had a merger. Dont miss my take on dowdupont. Todays news. And you know what i suggest you do . Stick with cramer announcer dont miss a second of mad money. A follow jimcramer on twitter. Have a question . Tweet cramer, madtweets. Send jim an email to madmoney cnbc. Com or give us a call at 1800743cnbc. Head to madmoney. Cnbc. Com. I have asthma. One of many pieces in my life. So when my asthma symptoms kept coming back on my longterm control medicine, i talked to my doctor and found a missing piece in my asthma treatment. Oncedaily breo prevents asthma symptoms. Breo is for adults with asthma not well controlled on a longterm asthma control medicine, like an inhaled corticosteroid. Breo wont replace a rescue inhaler for sudden breathing problems. Breo opens up airways to help improve breathing for a full 24 hours. Breo contains a type of medicine that increases the risk of death from asthma problems and may increase the risk of hospitalization in children and adolescents. Breo is not for people whose asthma is well controlled on a longterm asthma control medicine, like an inhaled corticosteroid. Once your asthma is well controlled, your doctor will decide if you can stop breo and prescribe a different asthma control medicine, like an inhaled corticosteroid. Do not take breo more than prescribed. See your doctor if your asthma does not improve or gets worse. Ask your doctor if 24hour breo could be a missing piece for you. See if youre eligible for lets get these dayquil liquid gels and go. But these liquid gels are new. Mucinex fast max. Its the same difference. This one is max strength and fights mucus. Mucinex fast max. The only cold and flu liquid gel thats maxstrength and fights mucus. Lets end this. Phil oh no. under his breath hey man hey peter. unenthusiastic oh. Ha ha ha joanne . Is that you . Its me. You dont look a day over 70. Am i right . Jingle jingle. If youre peter pan, you stay young forever. Its what you do. If you want to save fifteen percent or more on car insurance, you switch to geico. You make me feel so young. Its what you do. You make me feel so spring has sprung. Ugh heartburn no one burns on my watch try alkaseltzer heartburn reliefchews. They work fast and dont taste chalky. Mmm. Amazing. I have heartburn. Enjoy the relief. Jeez, when you only sleep three hours a night, you take it after todays vicious beat down, its worth remembering that not every stock that went lower today actually deserved to get hammered like it did. There are plenty of companies doing whatever they can to take advantage to control their destiny. You should buy stocks and the market throws a gigantic sale like it did today and like i expect it to do on monday. Mattress firm, down 2. 68 today. Who took my lovey blanket . Anyway, back on november 30th, we learned Mattress Firm, the number one Mattress Retailer in the united states, is buying sleepies, that will make it the only coast to coast, border to country. Not only does this deal expand Mattress Firms footprint, giving them more than 3500 stories, but it gives the company difficult to penetrate markets until the northeast that can be extremely lucrative. The stock has fallen 23 from its twoweek high back in march. Should you view this as an opportunity to buy it on the cheap . Or are there real issues holding the company back because it should give you you pause . This one is a bit of a shootout. Lets go to the mattresses. All right, its something i always wanted to say on television, albeit not exactly in this context. The mattress industry is incredibly fragmented. Mattress firm is in first place, the average cash payback period for opening a new location is less than a year. You can get your money back in a year. Ive done a bunch of businesses. Thats really quick. Even before the sleepys deal, the company had a game plan to grow its business organically and through acquisitions. Organically is the real growth. Mattress companies have been taking more and more shares. Consumers demand ever greater expertise when they go mattress shopping. However, this has not been a particularly good period for Mattress Firm. Think about home depot. When the Company Reported Second Quarter results in september, it missed on both the top and the bottom. Increased. These results and especially the weak guidance were so disheartening that Mattress Firms stock went into a nose dive. That caught my eye and said somethings wrong here. Since then the stock has picked up some momentum, in part because Mattress Firm had an interest if not revelatory meeting where they laid out a growth plan. The company highlighted their omni channel and direct to consumer reference. The hand holding caused the stock to jump. After the analyst day, the next Big Development came on november 30th, when Mattress Firm announced a landmark acquisition of sleepys, which has locations in 17 states. This transaction is expected to close in the second half of next year. Savings and more about scale. By snapping up sleepys, Mattress Firm is establishing itself as a nationwide bedding retailer. The combined company will be able to squeeze more value out of its Distribution Networks and its ad campaigns, plus theyll have more Bargaining Power with suppliers and with pricing. On top of that, the buying company will generate a substantial amount of Free Cash Flow which Mattress Firm can use to pay down the 740 million its taking on in cheap debt to buy sleepys. All that said, there are concerns about the sleepys deal. The implied price of 780 million represents a pretty good price for sleepys. Some people are worried that company thats basically been stagnant despite pretty strong growth in the mattress business. Ive seen analysts fret that Mattress Firm is taking on too much leverage. At the close of the transaction the company will have debt to ebitda ratio of 4, which doesnt leave a lot of room for error. Theyre still going to have enormous Interest Payments to me. Plus Mattress Companies have a long history of failure. However, i think many of these worries are being blown out of proportion. Mattress firm has a long history of making acquisitions like this one. 2012, they bought mattress giant. Last year they acquired mattress discounters. Mattress kings, bed mart, sleep train. Theyre trying to dominate the country. We like that. In short, Mattress Firm has a to consolidator. Sleepys has been extremely successful in urban areas. At the same time that we learned about the sleepys deal, Mattress Firm preannounced its Third Quarter results. This time the company beat wall streets earnings estimates, up 3. 8 . When Mattress Firm went on to report full results this past monday, Company Management maintained their full year guidance as they expect sales to decelerate in the next quarter. Put it all together and theres a lot to like about Mattress Firm. Here is a company that just started getting its act together. And one you might want to look at after the fed rate hike. Im trying to give you a full list ts wehi of what could get hurt. Enough stocks that are plays on rising household formation. The optimal situation would be if Mattress Firm cut down its dell. A deal of stock would be good. It would give you a chance to buy at a discount. If you want to speculate on a nice Mattress Retailer then you have my bless to go buy Mattress Firm. I think the bull case is stronger than the bearish one. But keep in mind, it is a legit bear case. Not to mention theres an army of short sellers betting against the stock because of its uneven performance and higher leverage. I think the bulls will win out. You should still be careful and only buy Mattress Firm in weakness, because it would be easy for a company to screw up the acquisition with sleepys. With all the money its borrowed truly would be disastrous. Thats why i need my lovey blanket in case they dont issue that equity that i want. Theres so much more mad money ahead. It could be a spinoff in yum. Could it be a nasty treat for shareholders . Then there are two giants of american industry, and today they decided to tie the knot. Whats next for dupont and dow . Im revealing. Plus investors barred from accessing their money, the sec standing on the sidelines. Its not the latest hollywood feature. Its happening right now. Ill tell you why its going to why dont you stick with ugh heartburn no one burns on my watch they work fast and dont taste chalky. Mmm. Amazing. I have heartburn. Alkaseltzer heartburn reliefchews. Heres a question for you. Whats happening with yum brands . The global fast food brand has untouchable, given the companys huge exposure to china where theyve been plagued by the avian influence, food safety concerns, and worries about the overall strength of the chinese economy and the consumer. Yum finally decided to take some action, announcing its going to spin off its business, creating two separate businesses, yum china, and yum brands which will be everywhere else except china. There along with operating concerns have been dragging down the rest of the company. Although if the Chinese Market were to come roaring back, then yum china would let you participate directly in the upside. When yum first announced the china spinoff, we learned that yum china would have exclusive rights to kfc and pizza hut in the peoples republic, growing its locations from 69 to up to 20,000 down the road. The global is to create a spinoff that will serve the Chinese Consumer. At the same time, owning this stock would be a bet on kfc, pizza hut and taco bell. At long last the rest of the company wont be hit by the Chinese Business. Over time it plans to be a franchisor, instead of running many of its own restaurants. This slower growth, higher Margin Company also plans to return to shareholders. Much. Yum just hosted an incredibly important analysts meeting have we finally got some details about the spinoff plan which management expects will be finished by the end of next year. What did they say yesterday . Lets start with what we learned about the future of yum brands once they get rid of china. It will be a more focused, high margin, ill call it a steady eddie global franchise plan. Yum is targeting 13 annual Earnings Growth along with a 2 dividend someones the separation goes through. The nonchina part of yum will be 96 franchise, oh, my god, a cash machine. In short, the postbreakup yum brands will be exactly the kind of slow and steady restaurant stock that im sure many of you would like a piece of. Look what happened with steady. This business will have a very different profile after the spinoff. Yum china is going to be a much higher risk, Faster Growing Company than the remaining yum brands. The Chinese Company plans to generate 15 Earnings Growth annually after the separation with no external debt, a massive amount of Free Cash Flow. Management believes yum china will have enough cash to pay a significant buyback. Yum is forecasting 5 and 6 annual sales growth in china and 3 to 5 margin improvement. Put it all together, thats 15 Earnings Growth. That seems doable, although it certainly hasnt been doing that lately. Tonight i want to take you through the most crucial pieces of information they gave us. Numbers for yums china business, sales declined by 3 , driven by a brutal 9 stepdown at pizza hut. It hurt the stock particularly since wall street was expecting a 3 gain. Management reiterated their preference for growth in china given the strength of kfc. My view . Yum china still has a lot of work to do to stabilize its comps. For now, theyre no longer in a tailspin. Could be some easy comparisons ahead. Yum brands wants its Chinese Business to flourish. Of course theres still a year to go before the breakup goes into effect. Yesterday yum told us it plans to return 6. 2 billion to shareholders. These guys are really proshareholder. One company will be trying to feed the other. Yum expect Going Forward . Pizza hut yum blames on the market. Kfc continues the gradual rebound. This was once a redhot reason to own yum, kfc china. Its very difficult to predict the actual course of the Chinese Consumer economy. I think this could be a good story if yum china could figure out whats ailing its chains. The new ceo appears to be focused on making the menus and operations easier for the customers to interact with. But many analysts worry the strategy might be too aggressive and numbers might have to come down. On the other hand, yum outlined five issues they believe could help them turn around pizza hut. Plus they plan to highlight the pizza hut value proposition. Right now the chinese view this dining play. Thats definitely what yum is going for. They plan to improve the instore experience and roll out better digital technology. Personally i find some aspects of the turnaround plan less than encouraging, especially the focus on value. It suggests that yum china might sacrifice price to go boost traffic. Outside of china, pizza hut is bringing in its best numbers in years. Plus we know taco bell, which has no chinese presence whatsoever, is currently on fire. Thats something yum believes they can keep doing for many years to come. Changing advertising, people like it. Weve got a lot of promises out of yum at yesterdays investors meeting. While the company answered many of the biggest questions, right now the story comes down to the companys ability to execute. Thats going to be difficult to predict. Fortunately weve got a year before the spinoff happens. Lets see if yum can turn around its Chinese Business. Otherwise i would rather ignore stub of yum brands when the breakup happens. But again, weve got a lot of time to make up our minds before we do. However i salute yums management for taking these bull actions to bring out value at a time when the market is not satisfied with business as usual. If you can get the stock below the 71. 31 they were at today, i think its worth it for the ride. Elise in new york. Caller hello, mr. Cramer. Can you advise me if i should keep walmart . Ive had it for 35 years. This is a very tough question. If youve had it for 35 years, you have a big tax basis. I dont want you to pay taxes. I think it will take two years to turn. I think Doug Macmillan two years to turn it. If you can hold it, take the 3 yield and sit on it, i think it will be fine. Before then. It will take too long. Can yum execute . Time will tell. Lets see if it can turn around its chinese busy. Otherwise but with the stub of yum brands when you get it. Much more mad money ahead. Its a 130 million deal. Dont miss my take on the dowdupont merger. Its kind of like a script out of a hollywood blockbuster. Plus a freaky friday edition of stick with cramer. coughing coughing disrupts everyones life. Thats why theres delsym. Delsyms advanced time release formula helps silence coughs for a full 12 hours. All night. Or all day. Americans. We try to live healthy. But many of us dont know there are nutrients that can help support our metabolism. Take new one a day healthy metabolism support multivitamin with chromium to help use carbs from food and bvitamins to helpconvert food to fuel. One a day. Looking for 24 7 digestive support . Try align for a nonstop, sweettreatgoodness holdontoyourtiara, kindofday. Live 24 7 with 24 7 digestive support. Try align, the undisputed 1 ge recommended probiotic. Theres moving. And theres moving with move free ultra. It has tripleaction support for your joints, cartilage and bones. And unlike the big osteobi flex pills, move free ultra. Get your move on. I take pictures of sunrises, but with my back pain i couldnt sleep and get up in time. Then i found aleve pm. Aleve pm is the only one to combine a safe sleep aid plus the 12 hour pain relieving strength of aleve. Im back. Heres a prediction. Eventually well look back at today and think, wow, how did we not take advantage of the weakness in the stock market to buy dow chemical or dupont after the two chemical giants announced their merger deal . Well be kicking ourselves that we missed the opportunity. I know theres plenty wrong with the stock market right now. Lets go through it again, because you know im very cautious. We have everdeclining prices including oil which put pressure on debt and equities as we saw this week with a disastrous cut by Kinder Morgan and the shocking decision by a large of a High Yield Fund because there was no liquidity to meet redemptions. Every industry that i follow is weaker than it was six months ago. We know that the rest of the world is slowing. The stock market is now doing quite poorly. Ive become less bullish about stocks. As ive repeatedly said, once the right hikes begin, you cant like it as much as you did before. Or to put it another day, this was a bad day to announce the merger of dow and dupont. Who wants a worldwide Chemical Company in a fed slowdown . I would totally agree if i didnt have so much faith in the people doing the deal. The ceo of dow chemical has been working like a dog to get his company out of the chemical business where dow can provide little value added. Meanwhile, hes cut out a kind of a brilliant way. Lowered the cost of the raw feedstock needed for plastic. Thats natural gas or methane or propane, while buying back a huge amount of stock. And offering a bountiful dividend, allowing the stock to rally. Dupont too has a ceo weve watched for some time and applauded for his insistence on endless value creation. Ed bream was appointed ceo of the company. He sacrificed duponts history of autonomy. We like bream because we believe in breaking up companies to create value. He created more value when he broke up tyco than any other ceo. Do the deal. Thats pretty extraordinary. What makes me like this merger on the facts and the fundamentals . I like the three Different Companies that they intend to create. Theyll give you an agricultural chemicals company, a Material Sciences company and a Specialty Products company. Each of these businesses will be a leader in its respective industry. The 19 billion Agricultural Company offers the most comprehensive portfolio in the business. Management specifically pointed out the seeds and Crop Protection segments hand in glove would be parallel. I like this better than monsanto. Before this deal, it was being business. When the commodities gain strength, it will be the stock worth owning in the segment. The 50 billion Material Sciences business combines Technology Offerings that can provide solutions for customers in packaging, construction, goods markets. Dows plastics and infrastructure business, thats really the old core dow, dovetail perfectly. Finally, the Specialty Products is my favorite. They got Electronic Materials from dow, duponts industrial bioscience, nutritional, health, and safety offerings. Enzymes that will give you a company that looks a lot like the fabulously performing 3m. The combined entity, dowdupont, flip a coin . Anyway, they intend to unlock 30 billion of value with the establishment of these three separate companies. I dont even doubt that figure, considering that both ceos have amazing records of creating wealth for shareholders. Its not enough to shuffle the deck of the two companies. Theyre going to cut costs and bring out synergies. Those are overused words, but theres a ton of overlap between the two businesses. The ceos can choose which plants to open and which to close, and there will be a ton that they close, sorry for the works but it will boost the bottom line. I think the savings will be even bigger than 3 billion. On a management level, bream is going to be ceo over the other two companies. Years to pull off. Theres no slam dunk here when it comes to antitrust issues. Combining the agricultural business does eliminated some competition. Youll have to wait for a long time to see the fruits of the measure. Weve decided to hold on to dow for the travel trust, because youre being paid to wait, with this yield. While im at it, i want to salute nelson peltz for his persistence in making something happen here. Earlier he rebuffed the dupont board after a bitter proxy fight. The stock fell 20 points instantly. He urged viewers to stick with dupont, because he wasnt giving up on pressuring management for returns. I said, stay the course, because peltz has the best track record he never wavered. Dupont stocks dividends are all the way back to where it was. The bottom line, i say congratulations to all involved who put this deal together. So sorry that the stock market couldnt give you more of an instant reward for your efforts. We have a not so hot tape right now, not much working. But one day, dowdupont will seem like a pretty good darned idea. Just dont let that day be when the stock is up substantially from this nasty session where the deal was revealed. Mad money is back after the break. Red 97 set red 97 did you say 97 . Yes. You know, that reminds me of geicos 97 Customer Satisfaction rating. 97 . Helped by geicos fast and friendly claims service. Oh yeah, baby. Geicos as fast and friendly as it gets. Woo geico. Expect great savings and a whole lot more. Strong hair can do anything just like you strong. Is beautiful pantene man sternly where do you think youre going . Mr. Mucus to work, with you. Its taco tuesday. Man youre not coming. I took mucinex to help get rid of my mucusy congestion. Im good all day. [announcer ] mucinex keeps working. Not 4, not 6, but 12 hours. It is time. It is time for the lightning round. You say the name of the stock. I dont know the calls or the name of the stock ahead of time. I tell you whether to buy or sell. When you hear this sound [ buzzer ] then the lightning round is over. Are you ready, skeedaddy . What do you think about nei . I say buy. Bud in ohio. Caller how about Regal Entertainment group . I like the yield. I think its okay. The whole slate hasnt been that good for movies. How about scott in michigan . Caller hi, mr. Cramer. Buy, sell, or hold, heartland systems . I think its got a lot of good things to be said. Caller i am calling about chrysler with the impending not recommending any oil stocks, too risky. Dennis . Caller northern american tank. Tankers are all filled, i really like it. That, ladies and gentlemen, is the conclusion of the lightning round. [ buzzer ] announcer the lightning round is sponsored by td ameritrade. Im in do you dubai. Dont bother me, im in dubai. We used to do a lot of theater in the old days. Thats what i think in the they need somebody right here. Thats it im a buyer of yahoo thats what it was, david. This rubbermaid merger, i like it, it would allow these two companies to bargain better with the walmarts. The walmarts are always trying to wrest the marginal profit away from Companies Like these. If they get together, it would be a very successful mix. Did that not work well or what . You know what might be a super combination . Isnt that dynamite . That well. Im calling Martin Franklin right now and get him down here to fix it. To feel this special. You need to eat this special. I love it kelloggs special k. Made with whole grains and fiber. To help a body thrive. I love it folic acid and vitamin d. To make a body feel this good. Start your day with 150 nourishing calories. In a bowl of special k. I love it eat special, feel special. Discover more ways to eat special. With special k. There are nutrients that can help support our metabolism. Take new one a day healthy metabolism support multivitamin with chromium to help use carbs from food and bvitamins to helpconvert food to fuel. One a day. Enough pressure in here for ya . Im gonna take mucinex sinusmax. Too late, were about to take off. These dissolve fast. Theyre new liquid gels. And youre coming with me. You realize i have gold status . Mucinex sinusmax liquid gels. Dissolves fast to unleash max strength medicine. Lets end this. I take pictures of sunrises, but with my back pain i couldnt sleep and get up in time. Then i found aleve pm. Aleve pm is the only one to combine a safe sleep aid plus the 12 hour pain relieving strength of aleve. Im back. The bond market speaks softly but carries a gigantic stick. One of the things ive learned in my many years of investing is you always have to keep one eye on the credit markets on how bonds are trading. You need to know about issues involving solvency and liquidity. Markets to raise capital. I always point out these risks to you because i myself have been blindsided by just focusing on equities many times in my life, and not keeping my ear to the ground of the bond market. Well, this is one of those days when my ears are burning with concern because of the troubles at a High Yield Bond Fund run by third avenue management llc. This firm has decided to bar investors from getting their money from its focused credit fund because they cant meet their demands to give cash back in any orderly way. When they try to sell the bonds they own, theyre destroying the very market for these bonds because there are no real buyers who want to sell. How disconcerting this move is. People at money mutual funds have the expectation if they want their money back, they can get it at a moments notice. Thats what a mutual money fund if theres no liquidity in the investments themselves, i think the whole notion of the mutual fund concept is going to be called into question by this one firms position. Third avenue management is going to sell them over time in order to return your money. But who knows how much will be left versus what you thought you had in the fund by the time that liquidation is over. Third avenue did not contact the sec before it banned redemptions, according to the wall street journal, because it needed to act fast. What is this, a run . That is unprecedented and alarming. The implications of the feds decision are wide ranging. Yesterday i told you to get out of emerging market debt, High Risk Energy debt thats junk, because of the problem thing price of oil. I wasnt broad enough. These types of funds, people read about third avenues decisions, and they start making withdrawals. Ive looked at recent investments seem pretty unattractive, and i am being very kind by saying that, and they were very risky. Thats not the point. The point is that the market for high yield debt has so little liquidity right now that its worrisome for those who own any kind of openended fund with this kind of junk in it. Normally a fund would go to brokers and ask for pieces of paper. But brokers are no longer willing to buy bonds from funds like these because they fear violating the doddfrank legislation. Meanwhile, as liquidity has drained or dried up, the size of the pool of assets like these has gotten bigger and bigger, growing like a weed. Theres perhaps as much as 1. 4 trillion of this high yield junk out there, much of it created because of the good times coming out of the great recession, and the demand for instruments with a bigger return than Treasury Bonds because the return is so this is that reach for yield play that i always tell you to avoid. Third avenues tactics will shock many clients into action this weekend. All at once, on monday, to avoid further losses in a market thats been weak for ages. Thats whats going to happen. Its going to cause a lot of stress in the system. And it will impact stocks negatively. As we saw today, that was behind a lot of this. Once again, im going to alert you to my more negative stance on all markets. This too shall pass. But call me distressed by the actions of this distressed debt fund. I would like to think its a oneoff development and it wont happen to other funds. But were already hearing about another fund, a hedge fund, stone line capital. Mutual funds are supposed to let you out immediately. Next week could go very rocky for these kinds of funds as managers try to flee them. With the Federal Reserve poised exacerbate the problem. Stick with cramer. I take prilosec otc each morning for my frequent heartburn because you cant beat zero heartburn ahhh the sweet taste of victory one pill each morning. 24 hours. Mutual funds are inviolate. Which is why im urging some caution here ahead of the fed meeting. This is a more important story than the fed. Theres always a bull market somewhere and i promise to find it for you right here at mad money. Im jim cramer. I will see you monday. Tonight on 1st lo, its noght 1st look, its nothing but big kids and big kid toys. Its a family showdown on the racetrack and the patridge grand prix. I was talking smack before, but now im a little nervous. We tackle the wipeout run and try our best not to get, well, wiped out. I drive the sexiest exotic cars ive ever seen

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