happy birthday to my brother mark, before i forget. heart of gold. and ibb. tim mentioned it earlier. >> happy birthday, mark. >> happy birth day, mark. ibm, mel. >> all right, thank you for watching "fast." "mad money" withimrar ar rhtow.j cme my mission is simple. to make you money. i'm here to level the playing field for all investors. i promise to help you. mad money starts now. . >> . i'm jim cramer. welcome to med money. my name is to educate and teach you. call me or tweet me at jim cramer. every raleigh has a lifecycle. at first it is led by the

strongest companies out there. the magnificent seven. so the forefront of a market stage. without advancing 173 point. nasdaq gaining .70. that is the heart of tomorrow's fed meeting. is the rally goes on, this extends to others in the ballpark. think semi conductors, cybersecurity and enterprise software. then a further burning out of the rally away from tech. buyers converse on a mixture of cyclical stocks, homebuilders, aerospace and the railroads. as the advance continues, more left behind groups play catch up. think heavy industries, materials, travel and leisure. this is centered on rock moderating interest rates. the retailers advances they survive the credit and the credit of their customers. therefore, they thrive when rates go lower. the banks got crushed by the fed's rapidfire rate hikes. more in the bank later. even the drug stocks have

joined the parade thanks to takeovers for diabetes and weight loss drugs and then the food stocks through off the gop shackles. another day in the sun. finally, after all of this hoopla can we get to the individual so-called retail investors buying stocks in mass. in this case, the most since 2022. that is where we are in the lifecycle right now. >> i have to tell you, i always hope that they go for higher-quality companies when the investors come in. like the ones from the travel trust in you can followed by a going to the cnbc investing club. that is not usually what happens. >> these investors seek a quick win. just pure speculation. and and then nodded, seeking stocks with trying to engineer another gamestop. infamously soared from the single digits to the 400's in a few weeks time. so the sun of the stock beckons

for even if it is a huge money loser. >> at the same time, the new buyers won on crypto. i met with 100 individuals this week for my wife's brand in dallas, texas. many wanted to know about the crypto currency and adjacent stocks. i cannot give it to them. i never like to see this kind of speculative frenzy because of what it represents. remember that i'm tracing the lifecycle of a rally here. rallies tend to stop when the speculation gets too heavy. i see that happening now. >> let's go back to the fuel that kept the rally going. the possible pagan interest rates. if it dismisses the cool inflation numbers like today's cpi, the consumer price index, you need to brace yourself for a selloff.

the epicenter of the decline will not be the solid sex i deserve to go higher but the most speculative stocks that have already had huge runs. >> what exactly are we talking about here? let's get granular. i'm going to give you something. i will start with a firm holding. the buy now pay later outfit. it looks like roadkill as the feds raise interest rates. the company attracted short- sellers to a food the fed would never stop. but run by frequent ghost guest on mad money and has a very good handle on things. a lot of defaults. 22% appear to be on the wrong side of the trade. when a firm recorder with no real degradation. the stocks are 125% since the end of october. >> is that sustainable? i don't think so. but panicking short-sellers so they don't care. if you own a firm, guess what!

i think you should take the profit. it is a highly speculative stock. for me, it forms the poster child for this late stage of the rally. a money-losing company with the risky stock is up huge because of successful short busting and that could go down huge. then there is claim based. people want a stock that gives you the bang of crypto and have gravitated to claim based. 15% and in your face. the company itself does not make money. >> the stock is up 81%. since october on a correlation of rally with crypto. if you buy now, i think you are late to the party. one of the bigger bus of the era come they seem immunized. this one is a real gamestop or. left behind and thought to be on its last legs, no wonder it is up 77% in less than a month and a half.

we previously spoke to the ceo of lyft which is the uber rival. i was impressed with his vision and i like his execution. if you want to see a viable competitor with uber despite continual losses. but as the stock deserve the 52% gains in the end of october? yes. if you think they are still covering positions. no if you think the process is almost done. i like it. the company will make money. but while my, what a run! have a lemonade. the insurance company says it uses artificial intelligence to federal policies. some of the younger investors, the company is losing at $3.50 per share for this year. that is why 33% of the stocks sold short. making it a clear gamestop like meme turbid which is how lemonade can rally 60% since october. not much more than i hoped.

don't forget upstart, a company that uses ai to make loans. it seems addicted to making money. now does up to $35. a 40% since the end of october. and he sent a prophet insight. upstart needs actual rate cuts out of the numbers will ever catch up to the stock price and i don't think that is coming anytime soon. then there is carmona. digital used car dealer that struggles to make money as a dead man walking. the stocks sing to $3 and change of the end last year. like games that come they refused to ring the register. forgetting that they make money, but the hogs, guess what, they get slaughtered. 46% gain since the end of october. leaning in a whole new different group to the oscar meyer section of the supermarket. finally, you have to consider roku part of the speculative cohort. people are desperate to find a way to play it and speculators

have seized on roku which is why the stocks go from $60 to over $100 since the end of october. around 10% of the flow. that is a lot of short-sellers and they are clearly hurting. it feels like a lot of buying is shortcoming. when it is done, i bit the stock is lower. bottom line, i just gave you the anatomy of a rally. we just don't want it to be an obituary of the rally. if stocks are levitating on a combination of short squeezes and johnny-come-lately buying and there isn't selling for the people being greeted right now, take it from this one time obituary right hear. the funeral parlor beckons. want to go to roger in minnesota. >> hello jim. appreciate being on the program. i have two stocks for you today. one of them, i just don't know what to do with and i actually sold out of my position.

i bought some right after the last earnings report which was another excellent earnings report. the company has grown 100% year- over-year but the stock can't move. i don't know if they need to put ai on the ticker. >> that would be something. celsius appeals to me because pepsico has a big position. there are a lot of people whispering about how this company is not doing that well. i don't know about that. i think of pepsi gets in it, it is fine what is the short versus long and the real tug-of- war. battlegrounds. we have seen the rally extended and it could be an indication that the lifecycle is nearing its end. mad money tonight, i'm going straight to the source with the commerce secretary to get an update on semi conductors, our relationship with china and

what to expecting the new year. last few months of an bush of the market with long yields. could this be sustained? or should investors be prepared to handle a changing market? i'm going off the charts to get a sense of where things could be headed. and what happened to the ipo market? i will give you might take on the group that seems to have a promising start to 2023 and then fizzle out. so stay with cramer! after last month's massive solar flare added a 25th hour to the day, businesses are wondering "what should we do with it?" i'm thinking company wide power nap.

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last to resolve the big payoff of the chips in science act. the semi conductor a congress passed last year with the government provided $35 million to help bae systems whose production at the new hampshire back. steps are fighter plains. i expect to the first of many for the subsea applications are what matters is the money is being spent on shoring up the domestic; doctor pat capacity and i love it. i got a sound -- sit down with the u.s. commerce secretary to learn more about the chips act and the tricky trade relationship with china. take a look. >> welcome back to mad money. >> are to be with you. >> thank you so much. i have been very impressed with the limitation of the chips. i want to talk about the new plan. e-plant new hampshire, how did it come about? >> it is huge. this is huge. we have entered a new phase of implementation for chips.

we are putting money out the door and backing some of the bus companies in the world to expand in the united states. this particular announcement that i made yesterday new hampshire will allow bae to quadruple the number of chips that they make in america and those of the chips that go into the f-15s, i 35's, satellites and all kinds of military equipment that you know, jim, need to be made in the united states. >> i think it is incredibly important. i found myself thinking, where are some of the chips coming from right now that you are replacing? >> you know, china, taiwan. other parts of asia. that is what keeps us up at night and that is what we are working so fast to make sure we expand chip production right here in the united states. as you know, we have some of the best chip design companies in america. the best chip software

companies in america. we have to get back into the business of making and packaging chips in america. >> i think the property is american. i think others want our intellectual property and particularly the chinese. let's discuss what happened at your dinner in san francisco. because i was hoping that the cessation of what i would regard as being ill advised acts by the chinese. but i'm not sure there has been. >> we were not hoping for magic, jim. just a little bit of progress. i think we got a little bit of progress. president biden had i think a very productive, constructive candid direct discussion with president xi. i was able to be part of that meeting. i spent hours with my counterpart. and we said to them, listen, action speaks louder than words. president xi and his minister said to us that they want more firm direct investment and they want u.s. companies to do business there.

we said to them, show us. don't tell us. show us. don't rip off our ip. have a regulatory environment that is fair and not arbitrary. don't target u.s. companies. and so, we begin the dialogue which is a good step. nothing good will happen if we don't even talk. we have seen a little progress. you saw the vm-ware acquisition of approved. see mastercard being allowed to do business there and expand digital business. but we have a long way to go, jim and they need to show us that they are serious that they want us to do business there. that means protecting ip. >> what i'm concerned about, right after the dinner we spoke with palo alto networks, two of the most sophisticated companies in terms of cybersecurity. both of them said there is actually no let up whatsoever and hacking after that. >> i cannot say that i'm surprised. i do hear from ceos. and meet with a couple of ceos

every week who have either just come back from china or call me or they are thinking of going. and they report similarly. similarly that it is getting harder to do business in china and not easier. but we are not going to let up. as you know, i'm a dog on a bone. >> i know that. >> u.s. business deserves an advocate. they deserve a fair shake. we are not asking for special treatment. we just want a level playing field. >> they are not used to someone like you. your business and tough. you are not one begin -- to give in and given that market so much as protect the country and get into the market. and i can tell the first priority. and you are very clear. and they don't know what to do with you. >> i get that a lot, jim. i get that a lot from a lot of people. but you said that and it is exactly right. national security first. and not negotiating. when i was there, they asked me to water down the export patrols and semi conductors.

no. that is an easy answer. know, we are not to do that. but we expect you to treat u.s. companies fairly. we don't expect you to arrest people and not explain why after raiding a u.s. business. we will just continue to make the case. >> let's go back to the intellectual property. what do we do well in this country? we create. it is supplemented and made another country -- other places. the u.s. has increased dramatically in 2023. up 46% for a way for equipment. how do we know they are not getting current and that is trailing edge. >> what you said, you should come work with me, jim because this is what i obsess about every day. this is what we track. every single piece of equipment. we enforce every export control

with allies. in this case, especially the japanese and the koreans and we have to make certain that all they are getting is equipment to make older versions of chips, not the ev agreement that would allow them to make the cutting edge, leading edge chips. >> that brings me to nvidia which i think is a jewel of the crown of the semi conductor companies. of late, there has been talk of export controls and what can be sold. and i want to be sure that some people i think are overstating their comments from a couple of saturdays ago on what you will allow and video do. do you think nvidia is a good actor and you think they are willing to work with you on export and you -- are you happy with what they are doing? >> yes, yes and yes. it is a great american company. we talk to them frequently. they don't want to do anything that violates export controls. look, jim, right now, america leads the world an a i. let's remember that. it is the u.s. private sector,

innovation ecosystem, that allows us to lead the world an a i. it doesn't mean they can do whatever they want. obviously, they have to play by the rules, et cetera. but we have to enable them to be competitive and make money and sell what they can to other countries including china, as long as it doesn't interfere with our national security. i know that nvidia wants to comply with our export controls. i know they are a good citizen. but we also have to make sure that they can continue to compete, innovate and lead the world and that is why we have a lot of back-and-forth with them, to make sure we can achieve both goals. >> excellent. the weakest part of our defense, is the military supply chain that goes from taiwan. i know you are an advocate for taiwan. but taiwan sent a lot of business with china. how can we be sure that taiwan is not just stopping is a chokepoint and make sure that we are not hostages to taiwan,

as great of a country it is. it is very close to china and the chinese think they own it. >> yes. well we need to continue to expand in the united states and operate on our shores with american workers in the u.s. come with a separate facility. but beyond that, we need other companies, like intel, to make these chips on our shores and really critically, jim, we need the whole ecosystem. it's not just making the chips. it is the chemical companies and the way for companies and the tooling companies. that is what my mission is. you will know a few years from now if we have been successful, if we have a large ecosystem of leading-edge manufacturing in the united states, plus supply in the u.s., chemical supply in the u.s., talent supply in the

u.s. that is what we are playing for. i'm not playing small ball. we want to play for the whole ecosystem, including talent and engineering talent. so that, as you say, we won't be dependent on that chokepoint. >> let's speak to what is next. you have a lot of money to give out. you have some people -- excellent people that make chips. what is going to happen next for you and our country? >> thank you for saying that. in less than a year, i have recruited 200 people to come work here full time in government, six, seven days a week, from some of the leading tech firms, wall street firms, business firms in the country. and they are all patriots and doing it because they are patriots. what comes next is a lot of announcements next year. so yesterday was the first announcement, super exciting. we are live, all systems go. january, february, march and

april, look out for more announcements. >> madam secretary, we will luck out for more announcements. i'm a patriot too. so to hear you say that i should work with you, i say to myself, i want to do it for the country because you are doing what is right for the country and your very inspirational. for it to anybody left, right or whatever to work for this country. thank you u.s. commerce secretary gina raimondo. fantastic that you came on our show. >> thank you, jim. happy holidays. >> mad money is back after the break. . >> coming out, will the greenback relax and give oil a break from heavy headwinds? cramer goes off the charts with an approach you don't want to miss. next.

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long-term treasuries, prices plummeted and interest rates soaring. that changed in late october 1 bond with assorted rebounding allowing long rates to come back down. as i said, long rates coming down paints a better background. stock. is this move getting played out? that is usually an important question for the stock market which is why we have to figure this out. we want to try to answer by going off the charts with carly barnett, the author of higher commodity training and someone who has been dead right. a little over month ago, she told us to stick with the s&p 500 and she nailed it. in september, she called the peak in oil sweet coal. what does she think of treasury cooked a hot potato as a nobody wanted to hold to something with a sharp rally. as she sees it, this is made possible by habituation. as bond prices plummeted and rates soared, analysts panic.

this eventually created a coil spring situation where everybody want to sell or already sold.'s heart treasury prices only have one night to go. higher. i want you to take a look at this weekly chart. the 10 year treasury bill futures. the commitment of trader data down here. we love this report because it tells us exactly how home gamers, professional money managers and commercial headers with are position. the green line at the bottom represents the net position of large speculators, meaning the pros. look at this. garner points out the large speculate is got barash. this is the shortest position we have seen since 2018 near the end of the late rate increase cycle. you had to go back here on this is where they overdid it.

overdid negativity. what happened back then, from late 2018 until early 2020, they flip from short to long causing the tenure to rally 20 points. the old and the tenure fell by more than 250 basis points. garners not necessarily saying we will repeat that but notice the money measures were externally barash and the tenure. still extremely large position in the futures. she would be surprised at all if the yield in the tenure can fall 250 basis points from the high. simply because the short side of the trade got overcrowded. this is stretched from 2018 until the end of 2019 and for the stock market. this could be -- you might say we are on the same trajectory. that is certainly good news. when you zoom out and look at the monthly chart, garnet likes what she sees. tell up -- check out the strength index at the bottom. it is an important momentum indicator. it has upward momentum. but oversold territories.

in other words, even after the last couple of months, the tenure is a long way from being overbought. that means it's not done going higher. garner things are looking at a wholesale trench age. i know these are very clumsy looking but let's bear with me. the resistance at 111.15. that would translate to 4% yield. they expect the near-term consolidation is another head of state. it will steadily push the price of the tenure higher. remember that rates go down and bond goes higher. next is this at 117. what does that correlate to? a 3.25 percentage yield. wow. that would be something. garner things it is possible to get there without any additional fed cut. does is marketed the heavy lifting when long rates soared.

it can do the same on the way down. and if the fed starts cutting short rates anytime soon, garner could see the tenure going to 124. yield roughly 2%. i have certainly seen this kind of move before. we can get phenomenal bond pushing interest rates lower. that is what i call nirvana for the stock market. what about the other big picture? the strong dollar. check out the weekly chart of the dollar. most industries like the weak dollar. unfortunately, when rates are soaring, that popped up the value of the dollar. and long rates going lower, garnet said that would put downward pressure on the dollar. yes. and that is something we are already seeing. with the economy getting back to more normal levels of inflation, she sees the dollar heading lower. the dollar strength index has quite a way to go before gets

oversold. also to securities including companies like procter & gamble. that has a gigantic exposure to currencies that have been hurt by a strong dollar. take a look at this chart of the crude oil futures going back 30 years. you can see that tip of the oil turns bullish in a second or third week of december. sound familiar? take a look at the monthly chart of the west texas. garner says oils mostly stayed within a giving trade within the bottom of 2015. take a look at this. still supply is hanging out here. but is more with covid and the invasion of ukraine. unless we get another black swan type of event or highly unlikely, like ukraine, she expects it to hold above the floor of support which is at 68. after today's beat down, we might be looking at the lows.

dimming below that level before things turn around. accrued hold above $60, garner is betting it will go higher. around $100 hauber would be strata. and i would not be so great for the stock market. it would be easier for oil to get there with treasury yields and the dollar both getting weaker. by the way, garner notice the correlation between oil and natural gas has gotten much stronger the last 30 days. now trading in the same direction, about 90% of the time. that is unusual. if oil rebounds, natural gas should read on too. and with her on treasury yield and i'm not rooting for higher prices. here's the bottom line. this is the more benign market and could have more staying power which translates to a weaker dollar. things that are great for the stock market. and would be surprised to see oil bottoming right here. right here. might seem hard to believe. but again, who believed a long- term interest rates are about to pick two months ago? what a bunch of great calls by carly garner. i have to hand it to her.

i'm going to speak to zach in pennsylvania. >> jim, how are you? >> i'm good. how are you? on a little beaten down from sunday's action. we are 10-3. how can i help you? >> i'm looking at the 20 year horizon. i'm a little worried about the 20 year projection on oil. my stock is phillips 66. >> you are probably thinking we will be driving all ev cars and i don't blame you for being worried. i don't take this one year projection for anything related for the possibility ev takes over. short term, and the next year, i think it is what i call, up stock. i like the refining companies. thank you for the question. charlie garner, sing the treasury yields in the dollar have more word room to bounce on which translates to more for your portfolio. i'm setting up with a preview

of what to expect. then we will look at an underappreciated part of the market that i think investors could bank on in the coming months. so we have the lightning round. stay with cramer!

what happened to the great ipo market of 2023? early this year, look at we were getting some meaningful deals finally. but then it evaporated. experts at renaissance capital say we are almost certainly not going to get any big ones before the end of the year. one small chinese outfit is coming public this week.

disappointing. at the end of the year, we have had companies larger than $50 million raising a collective 19.4 billion. that is up from 2022. this year still represent weaker numbers but recovery has to start somewhere but when you drill down, there were 20 larger offerings that raised 100 million or more. those are the ones that you and i care about. >> averages are up six in prison the year. although nearly all is from the first day spike. measuring the first day of training, the big ipos are down .1% on average. but i don't want to make it sound like they are all dead. we have had some notable winners in 2023. for example, arm holdings, the chip designer made for the largest deal of the year and the fourth-largest ipo for the last decade. it looks like a success story. arm at $51. trading up to 63 and change on the first day. and then low to mid-50s.

it actually pulled back to the 40s before finally bottoming out. even wall street decided they did not like the 1st quarter out of the gate. when the ceo came on mad money, he told a very compelling story. while the stocks went down hard next day, it has rebounded to just under $65. >> i like the phenomenal story on the semiconductor food chain. most of the industry seems to be turning. i still like the stock. the expanded company is like mad. next, the cup group, known as the mediterranean restaurant chain. it became in june and too had out of the gate. that was very worrisome. nearly doubling on the first day and as the market sold off from august to october, the stock plunged from $50, to $29. cut in half. >> you have heard all the key positives if you listen to our interview with the founder of

the copper group. i told you i like the story. and i want you to wait before you pull the trigger. sure enough, it pulled back from $37 or less to become to $32 as of the last night's close. i think the anticipation of today of the lockup expiration. investors plowed back into the stock sending out more than $6, or 20%. stocks could have more volatility next few days and weeks. but it should now be officially considered a buying opportunity. i think you can buy right here and see if it drops and run insider sellers. finally, keeping out of a couple of duds. savers value village. it is a private equity backed thrift store chain. down 12% from where became public. and then more than 30% from close on first day of trading. whoever heard of a for-profit thrift store.

and instacart has proven to be one of the worst ipos of the year. down almost 22% from when it became public. more than 30% from the first day of close. which is when i told you to stay away from it. i also initially punted on this one saying to wait until steak was sold. we sold. and got a told you to wait here. we have seen lawsuits which is why, if you want to own one of these big consumer spinoffs, may i suggest you go with a -- halion. pfizer. close to 6% from where became public. down 22% in the close of the first day of trade. that is brutal. don't forget a brief bullish analyst meeting in the stock fell over litigation and the alleged linkage to asbestos in cancer. i did not get them all right.

the israeli tech enabled cosmetics business saw stock fall from $40 on a recommended in july, down to 24 hours -- $24 and change in october. still, it wasn't good. a couple solid cosmetics bands and growth and profit ability. but this is not the time to stick your neck out. and returned negative on birkenstock which is the german sandal maker. i worry the deal will be overhyped. when it went from 36 to 40 on the first day of trading, it looked like the right diagnosis. but pulling back the stock and it has been able to rebound to $40 and change and 21% from the first close. what i still need convincing on her birkenstock popularity is anything more than a fad by the movie barbie. yes. it is that big that it could influence sales. and worried about getting hosed by the private equity sponsors who has a big stake. we have worried about these private equity sponsors all the way. with 2023 almost over what is

the ipo class of 2024 going to look like? we have major deals coming including the chinese turned singapore fast fashion powerhouse and consumer facing companies like the kim conditioning underwear and shape are company, skims. and a leisure company that could be steaming hot, viori. and liquid death. murder your thirst. and the snowflake rival we just but with a few weeks ago. that one will be hot, hot, hot. and strike, the financial technology powerhouse. there in the digital media place. tailor-made to become meme stocks like reddit and discord. even general atlantic, a major private equity firm is thinking about coming public and that one could be a total homerun. >> was sent out to me after reviewing the 2023 ipo market is affected seems fair right now. it is not impossible for ipos to do well like it would have been for most of last year but

it's also not a given that ipos will do well which is how it felt during the days of 2020 and 2021 where people lost so much money. the bottom line, investors seem to review each deal on its own which is frankly all we can ask for. if the company has good numbers in a very valued stock, you can make good money after becomes public but if the investment bankers get too greedy, you might get hit with big losses. not too hot and not too cold. the ipos come next year and i hope they stay exactly the same, which is just right. mad money is back after the break. in the coming up, cramer takes your calls and the sky is the limit. it is the fast fire lightning round next.

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it is time. let's play this out. the lightning round is over. are you ready? let's start with bob in florida. bob. >> thank you for taking my call. >> thank you for calling. >> i am a member of the investing club. everyone on your staff is terrific. so please my complements. i'm calling about a stock you have recommended repeatedly. and despite its poor performance, hit a high back in april. beginning of november it was. i want to know and what do you

think. it has been of the last three trading days what is your crystal ball say about the future of g duck of healthcare. >> the stock is mispriced. you have to talk about what is going to need to happen. ge healthcare will be the way to get it. it is just an unbelievable business. any gift on that stock. let's go to rajiv in florida. >> how are you? >> and good. what's up. >> i wanted to talk about first dollar. >> i think it is going down because oil is going down and of oil bottoms, you have a win. why buy a stock that is levered to something we have no control over? let's go to mickey in maryland. >> happy hanukkah, professor kramer. >> right back at you. >> i am a person of faith and i prefer the word -- for the lord's favor for you and lisa and your children. >> thank you so much, sir.

i would like your advice on the defense stock that reported last week. they beat on the numbers. had a positive forecast for the upcoming year. after that, the stock had declined 11%. what is your insight on arrow environmental. >> thank you for your heartfelt wishes. it means a great deal to me and my family. arrow environment i thought had a very good quarter. i think it was profit-taking. i think the drone business is terrific. i would be a buyer of the stock. >> let's go to nathan in pennsylvania. nathan. >> hello jim. it has been a while since i was last on the show with you. great to be back on. >> given the 10 billion-dollar buy back in the fact that they pulled out of the potential merger with humana, how much more run does the cigna have? >> i thought the trundle back was humongous. it has gained so much from it that i would rather ring the

register than buy the stock. that is all i can say. was go to lucas in minnesota. >> jim. >> happy 4th quarter. >> what is going on? >> not much of a fan of the new stock crawler but i found a wonderful company called command. >> . >> what is in the debate talk about the stock? it has a terrific aerospace business. i have to tell you that it is dirt cheap compared to what he can earn compared to what it is earning now. that is the conclusion of the lightning round. >> the lightning round is going to be sponsored by charles schwab. coming up, cramer follows trends right to where the action is. consider the tantalizing financials when mad money financials when mad money returns.

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here we go. netapp makes efficient cloud mcan we land?ssible. you're old enough to do it in the sky now. but it's gross. there is no way we're landing. are you sure no one is watching? gwen mallard! do it now, or we leave without you. ok. funny thing about investors. they tend to get bored. they always search for something new big you might think people prefer to stand with the old winners but they survey the landscape for undervalued stocks. these investors leave footprints that you can see. right now the footprints are

leading right to the financials. that is where we find the best opportunities. at the moment, even the best financial stocks are trading at about half of the price than what the market is currently paying for the s&p 500. why is that? everyone has been terrified of the fed for more than two years. when the fed raises rates as rapidly as they have, the ability are missing opportunities to earn higher returns use of the banks have to pay them more money to keep the money. that is why the interest margin tends to like if interest rates come up too quickly picked second, when the fedex aggressively, wall street fears a recession. remembered the inverted yield curve and the inevitability of the so-called hard landing? when people lose jobs, they can afford to pay their debt. and these companies end up with a lot of nonconforming loans to crush profitability. this time, the banks were expected to take the kids and all lines of business. so far it hasn't happened.

we have ridiculously low unemployment and commercial real estate never really crashed. this week we had pennsylvania real estate investment trust declare bankruptcy for the second time in three years and assets will be given back to the banks that lend money. these guys have a lot of b to your properties far from the best real estate but buyers line up for the assets. there is simply too much value in some of these spaces even if it is a waste run of a shopping mall. don't forget we had actual bank runs this spring. they were too substantial and egregious to ignore but they did come to an end. the lack of subsequent bank failures and the avoidance of dividend cuts has solidified the banks as less risky investments, although not everybody got the memo. this year, investors have favor growth over value in the banks or value stocks are right now it seems worthless hooping of the justice department and the ftc are mergers which stinks to the banks because with any of

the regulators, this would be right for consolidation. thing that what has happen. all of these objections are going away. they are vanishing. if you price the stock for recession and you don't get one, the stock will go higher in value. there are no signs of the bank getting hit. the larger players are getting ipos and possibly more refinancing for private equity or portfolio companies. good for the investment and banking side. just green let. phase of this morning looks like it would try to spike the deal. let's go back to the mindset. the banks haven't sold at such a discount since the recession. right now, you can buy they will pay more for earnings later because the numbers feel a lot more sustainable. and a to member that if you think there is too much bullish enthusiasm for the market, too much retail money coming in or they were faced with a new world where the fed is done raising rates in my cutting them soon, you could argue that just as the banks were the worst on the way up, they could be the best on the way down to given how biden is doing in the

polls, i but we spent the next year hearing about what would change with republican white house. guess what. it would be the banks. the regulators would be more prone merger. much more forgiving. with regards where you stand politically, that is good for that. i like to say there was always the market somewhere and i promise to try to find it just for you here on that money. i am jim cramer. last call starts now. . >> right now, losing its spark, ford pulling back on the ev omission and wait could be grabbing tesla's attention. china, is the water at risk for hackers? iranfoz back to militants connecting a brazen attack on an oil tanker so why are oil prices down? striking back at criminals, apples rolling out a big move to stop thieves and thefts. plus, pulling back the curtain. netflix ruling viewership on al