Or everything is falling apart. The house of pain the value, of course, is somewhere in the middle. Today we took a step in the right direction. The market was, yes, mixed dow only gaining 100 points, s p add 2. 5 , nasdaq declining. 9 some stocks went up, others went down rather than the whole market marching in unison out the window however, most of the stocks that rallied were what i call slow down stocks, the ones that do well in recession. The foods, drugs, turbo charge, secular growth stories that can transcend the growth cycle which are very few thats a start but its hard to outrun the bond bears, arent they arent they hard people who look at plummeting treasury yields and decide eat economy is obviously headed off a cliff. Oh, they blame the trade war with china or the fed reserves unwillingness to signal theyll take action to prevent as serious slow down. Who can blame them i lost assurance from fed chief j. Powell that hes willing to do something about it, that he wants to bust it i would love that. So would you we would all welcome it. If he could give us conjecture to explain why trerk risk arial rallying in the same levels. But if powell wont do it, i will let me give you a hilarious tutorial about currencies and bonds. If you can believe there is anything fun by either of those things so you can understand why money is flying here how easy it is to fire from overseas, because its gotten such a snap. All right. Lets go back, to me with hair with my Old Hedge Fund lets go back to august of 1991. All right. At that point i was searching for some good ideas. I heard about an opportunity to buy dutch bonds, the netherlands, which were offering much better rates than you could get in the United States very similar to whats happening the other way now, right much better rates in the United States to buy these dutch bonds i had to buy some of their old currency called the gilder i had to clear that trade. Then i could actually go into the market and buy the bonds themselves through a broker. What could go wrong in what could go wrong id own the currency then id own the bonds, not the currency and pick up nice yields better than i would get from u. S. Treasuries make that cash, get a little extra. Sounded good to me the trader i went to said it would take awhile to buy those gil derz, 20 million worth and move it to bonds i was trading out of mize Country House in bucks county. My dad was coming in and we were going out for a bite to eat, so the trade had to be done in lick ety split. You cant go out and buy 20 million worth of gilders give me a shot here. Pop said we should go to burger king i agree, back then i had a more cavalier attitude to physical fitness to put it diplomatically we debated fries versus mcdonalds we considered the cleanliness. Pretty good experience frankly at least i thought when we got back to the house, i called the trader expecting a report on my 20 million worth of dutch bonds turns out i didnt have it my way. Not at all turns out while we were woofing down those all beef patties, there was a coup in the soviet union. L lunch, coup. Hard line seize it had, it was plummeting, it was diving. They were getting crushed. Sell, sell, sell. The gilder. The house of pain down more than 2 thats huge for a currency just like that. Remember, the time it took to get a burger not only that, bonds shot up, it happened so quickly that that moron trader hadnt even been able to buy the bonds. I was stuck with the gilder. That special order cost me 400,000 it was supposed to be risk free. Supposed to be a gimme instead it crushed me. I learned my lesson. Dont go buying foreign currencies in foreign bonds because you can lose your shirt. That special order really upset me it ended up failing, soviet union collapsed. I took the loss. So what the heck does that have to do with whats going on right now . Well, listen up. These days if you lived overseas and you wanted to do that trade, you know what, you buy u. S. Dollars and u. S. Treasuries because thats whats giving you that better yield. Of course unlike back then you can do it almost instantaneously as pushing a button. Its easier. Thats whats happening right now. The investors in the rest of the world are doing the easy way, swapping out of the ddebased euro and have it their way in our market tens of billions of euros, rubles, yen, whatever. Theyre being translated into dollars and buying anything for that yield for me its a gimme. Its a gimme because why would you own government bonds in a weak currency with negative Interest Rates when you can buy our own government bonds in a strong currency positive Interest Rate . Its almost too easy to buy our bonds. Fabulous bargain for them. Even right here tomorrow will be a barn began theyll be a bargain monday, tuesday, wednesday until they get to zero. Then it wont be a bargain when it plummets like this its not a sign from overseas fear of going into a recession weve heard that before. President trump is arguing we have an amazingly strong economy. Employment is still robust simultaneously he wants the fed to cut rates we have an economy thats not strong enough. Obviously the president has an aversion to admitting to anything might be be wrong with the economy even if that would help his case with the fed the consumer would have to cover some of these tariffs. Clarity. Which is it, a boom or bust . You know what, i think thats an entirely false dichotomy the truth is were muddling along. The overseas markets are definitely weakening we know that because Chuck Robbins c. E. O. Of cisco told us this morning they saw cracks in the economy. But walmart the biggest retailer in america told us that business is strong and the consumer is very healthy house of pleasure trump stock the problem is the review, macys told a woeful story, truly disspiriting i think walmart is the better tell a huge versus macys every day seems to be a new scare. Today a financial researcher working at the b. S. Of a short seller no less took on general electrics accounting. Claiming that ges headed for bankruptcy this is the same man who also correctly spotted Bernie Madoff was a fraud before his hedge fund blew up he has gravitas. He says ge lied about the exposure to the hard to value longterm care contracts c. E. O. Larry just bought a ton of stocks. Healy disagreed, but the stock got hammered anyway. Anyone with an ounce of credibility claims an american committed fraud, thats going to frighten people. The stock was down the mostly in 11 years, single day i have frequently criticized ge for the way they accounted for longterm care policies. Im confident they are taking aggressive steps to be more transparent and reserve enough money to cover the cost. However, as i have told ge management many times and told you, with longterm care policies, you can never reserve too much which is why the criticism resonated, it always will thats why the stock went down 11 . He is accusing the guy of market manipulation can you blame him . Can you blame him . Unfortunately this issue isnt going to go away any time soon the false dichotomy isnt either which is why stocks that do well in recession are rallying. Kimberly clark is up 25 straight points techs and ipd strilz are getting hit, too much exposure to the Global Economy bottom line, as long as they keep plummeting investors will remain unsure of themselves. Today they found stocks to buy along with bonds its just theyre the wrong stocks, the recession stocks, not the kind of leaders we want to get behind. Zack in florida, zack. Caller how are you doing tonight . I saw another 250,000 shares of ge today. Whats going on is this caller i want to give a shout ought to my brother. We all love and watch your show. Thank you, the bros caller yeah, man my question is for caterpillar yeah. Caller the stock is down from a 52week high of 159 do you agrees that it is under valued yes, i do, but you know what, i got egg all over my naacp on that i got like, you know, holland days sauce on my face. I bought it for the Charitable Trust. I play with an open hand and brag about the winners if i could hit myself over the head with a hammer because of kalt pillar i would. The stock is cheap, but i think its going lower i never sit down cat made me sit down lets talk to dustin in virginia dusty. Caller hi, jim, booyah, thank you for taking my call no brob caller bst technology, they beat projections last quarter but lowered future guidance. Is this a buy or sell, hold . Dont you buy that stock. Dont you dare that was one of the worst quarters ive seen i dont even i dont know, management wants to come on and explain it, in the end id say thats a horrible quarter. Why dont we go swimming in the love canal and pick up dxc, okay am i clear that was a bad quarter i dont mean any insult. Theyre all really nice. Brad in tennessee. Brad caller hey, jim, how are you doing . Good afternoon im doing good. Im doing good i was actually doing well, my mother would say whats up . Caller this is true. Hey, quick question. Im 56 looking to diversify my stock portfolio and hopefully retire in nine years okeydokey caller i own baxter stock and im looking to liquidate that stock and purchase till ray. What, youre going to sell baxter to buy till ray caller i dont know. Thats what i was considering. No, youre not. Youre not going to do that. No youre going to buy second rate cannabis stock and sell a first rate medical stock not in my house. Come on. Hey, chief, listen, we like quality. If youre going to sell baxter you can buy some merck but till ray hey, lets buy some till ray surely in times of uncertainty, but today the market took a step in the right direction i like those callers i try not to be too glib after a rough few days, better to opine on the health of the overall economy. The c. E. O. Joins me tonight, do not miss the c. E. O. Of Waste Management no trash talk, though. When someone is talking about a potential recession, where to put your money if the whole thing goes curfooey. Searching for positive stories, you name this, and this, im eyeing till ray. Just kidding im a amm health care. So stay with cramer. Announcer dont miss a second of mad money. Follow at jim cramer on twitter. Have a question . Tweet cramer, mad tweets. Send jim an email to madmoney cnbc. Com. Or give us a call at 1800743cnbc miss something head to madmoney. Cnbc. Com. Devices are like doorways that could allow hackers into your home. And like all doors, theyre safer when locked. Thats why you need xfinity xfi. With the xfi gateway, devices connected to your homes wifi are protected. Which helps keep people outside from accessing your passwords, credit cards and cameras. And people inside from accidentally visiting sites that arent secure. And if someone trys well let you know. Xfi advanced security. If its connected, its protected. Call, click, or visit a store today. In a volatile market, is one mans trash a stock market treasure the angst about how plummeting long term Interest Rates, yield curve immediate were headed for a recession at the end of the day talk about a topdown perspective the macro data, not doing the homework you know me i prefer bottoms up approach listening to Great Companies that might know something and compiling a mosaic to get a sense of how were really doing, and few companies can give you a better read on the economy than the best of the best in its industry, Waste Management its the largest Waste Disposal company in north america you know what creates lots of garbage . Commerce, construction guess what, Waste Management stock is up 30 for the year the company just reported a Strong Quarter a few weeks ago which is not something youd expect if were bound to as recession. Do not take it for me. Take it from jim fish, c. E. O. And president of Waste Management mr. Fish, welcome back to mad money. Thanks, jim how are you have a seat. Good to see you. I read this, i followed your company for 35 years 7 organic Revenue Growth in collection disposal business that is extraordinary. How are you doing it well, i mean, look, you just said it. The economy, you know, theres all kinds of discussion today, yesterday of course, and our business still seems to be humming along. Its a good indicator of the economy overall because we Service Every single segment of the economy. But, yeah, i mean Revenue Growth has been a real surprising, you know, positive for us. The top line is terrific. Now, there was a discussion on your call about there were lagging indicators if you do 7 maybe whats coming next is bad. But then you refuted that by saying, were not leading or lagging. Were just in business there are pieces of our business that are leading. That is important there are cycles, but there are pieces that are leading indicators commercial business which is a proxy for business is strong obviously construction demolition, you see cranes everywhere and that is reflected in i think 13 year over year increase in commercial or cmd. Our special waste business, the event component of that is companies tend to hold off when they see a recession coming and they did not hold off. They didnot, thats important. There was one part of your Conference Call that i had never thought of, but because of i think its climate change, but whatever, there are more disasters than ive seen sadly, that is actually an important business for you well, it is its hard to predict obviously right but we were up partially because of the fires, which were tragic i was up in paradise and looked at it. If w it was absolutely terrible we helped clean that up. Last year was the hurricanes in houston, harvey and florida. Every year there seems to be something, youre right. It seems like theres more of these than there used to be. Right we have so many locations around north america we tend to be able to help wherever we are. A lot of people just picture you as landfills and trucks. But you are using technology in a remarkable way to help the bottom line. I think its exciting stuff. Were spending 100 million this year on technology, upgrading our Customer Facing Technology its not a secret everybody wants to use a mobile device right to contact their companies that they do business with so were really upgrading that our data and analytics, i spent time yesterday with some of our folks looking at data and analytics on how we evaluate our routes, how theyre routed dynamically, how we can check and see how our drivers are doing. So were really upgrading our technology across the board as well are there enough people to do that kind of data work for you its hard. Its a competitive market for sure, but were able to hire who we want to hire and thats a good sign. That is a good sign now, there are some terrific things youre putting out how youre uniquely positioned macro factors social trends, behavior shichlt i know we dont think of millennials and trash, but thats wrong youre ahead of the curve on this some think youre doing remarkable thats correct. Look, we hear all the time that millennials arent crazy about driving trucks theyre not crazy about operating heavy equipment. We have 2,500 heavy equipment operators. So were working with caterpillar. Were doing a pilot up in denver, colorado, where we remotely operate heavy equipment. Its about a mile and a half away it has the poe tings tential ton the job. Instead of having somebody operating on the face of the landfill theyre sitting in front of tvs and operating it remotely but you wouldnt need that if it werent for the fact that labor is in short supply versus the negatives who are saying were around the corner from recession. I hear obviously the Unemployment Rate is whatever, 50 year low. But were able to hire who we want to hire i cant speak to those companies that cant, but were able to get our drivers, our heavy equipment operators, our Customer Service reps. Were able to hire who we want to hire. I always like to ask you because i think our country is not good at it are we Getting Better at recycling . Are there anyplaces that are cities that arent rich enough to recycle where are we right now were starting to take were taking a real proactive approach to recycling. I will tell you recycle Commodity Prices are at 25year lows but what were doing is changing the model and were putting a new plant in chicago it takes out those things that we want as opposed to today where it a Conveyor Belt goes by and youre pulling off the things you dont want. Theyre dumping baby carriages and diapers. Theres a bunch of junk im not sure were Getting Better at producers of recyclables and trash. But Waste Management is going to change the way we sort that material and i think it really improves the quality does that help in a situation where china used to be a big buyer and now i guess they disappeared, not coming back potentially though, youre right. We used to sell 30 of our stuff to them. Now we sell 2. But its because it has nothing to do with the trade wars, by the way it has everything to do with the quality of the material. If we improve the quality of the material maybe theyre a big customer again i never thought you could make these kinds of numbers knowing the recycle through china would drop off like that it does speak to the health of the rest of the business. Thats true by the way is 90 of it they made that acquisition, youre doing everything right. Thats why youre up 30 for the year you deserve to be. Thats the president and c. E. O. Of Waste Management. Were featuring companies that you want, Domestic Companies with great organic growth. Thats what you need and also of course really savvy management able to do and execute in a tough environment. Mad money is back after the break. I keep telling you that were reading too much into this darn inverted yield curve. When long term rates drop, it usually means the bond market is feeling apprehensive about the future and yesterdays ten year, twoyear inversion is why we view it as a harbinger of recession. I dont want to be gl