cap one, it sets up interesting. if you are inclined to think it breaks out of the option >> have a great weekend, gentlemen. >> thanks for being here. >> i had fun with each of you. that does it for us here on nsctn" aio do not >> my mission is simple, to make you money. i'm here to level the playing field for all investors. there's always a bull market somewhere and i promise to help you find it. "mad money" starts now hey, i'm cramer. welcome to "mad money. welcome to cramerica my job is not just to entertain but educate and teach you. call me at 1800-743-cnbc or tweet me @jimcramer. you want to know what you can do in this business that's easy. the most useless thing you can do is worry about what everybody

else is worrying about the flip side of this is true, there is no point in getting excited about something and everybody else is eagerly anticipatin anticipating why? because when the vast majority of investors agree something will happen, that thing tends to be already priced into the stock market while the real economy moves at its own pace, you got to borrow money to build that equipment and use that equipment to manufacture goods and wait for the customer to come along and buy them the stock market has no such limitations. stocks don't travel at the speed of light, well, how about the speed of thought they come pretty close so the moment a preponderance of hedge fund mangers decide the economy is slowing or speeding up or flat lining stocks start trading like that's the case instantaneously, usually takes time to build that consensus, which is why you rarely see these moves happening at once but once the big institutional

portfolio mangers are on the same page about something, you can be confident it's baked into the averages that week. it will happen that week now, this is some basic economic 101 stuff. i don't have a ton of use for economists as a professional they take an ivory tower approach meaning they have all sorts of models for how the world is supposed to work and they can be very boring. sorry. but they rarely let the facts get in the way of a good story but the data conflicts with the model, economy elists have a ba habit of throwing away the data, not the model. however as long as you keep that in mind, economics can have very useful concepts for investors. one is what's known as the theory any given moment stocks reflect all the relevant information at the universe out there at that moment, and when some new data comes out, stocks

immediately adjust to reflect the reality. you'll often hear index fund purest explaining why it's impossible to get any kind of edge because whatever you know about a company should be baked into a share price, can't get an edge as far as they are concerned, markets are efficient and basically the same as gambling if everything you know is priced, that means your homework is meaningless and the only thing that can push a stock higher or lower is new piece of information that nobody knows. it has to be something totally unknown because if anyone did know, they would have acted on it already ergo would be built into the share price. that means the only things that can move stocks are unknown, unknowns to use the former defense secretary donald rumsfeld and if you're betting on unknown, unknowns, you might as well play roulette. it's more fun. that's why index fund advocates adore the efficient market hypothesis it's impossible for individual investors to consistently beat the averages so if you want

equity exposure, the only smart way to do it is put money in a nice, low-cost index fund that mirrors the s&p 500. as anyone that watches the show regularly knows, i have no beef with that and beyond me beef, whatever i have no beef with index funds. they are the best way for the vast majority of people to invest net market. i said that since day one of the show if you have the time and inclinati inclination, you should put a big chunk of your savings into an s&p 500 fund and it's perfect for your retirement accounts it's hard to be a good individual stock investor and takes real work but incredibly easy to be on index fund invest investor, right? putting money in a 401 k or ira index fund you can contribute over time with a paycheck and if you believe the u.s. economy keeps growing over the lang haul, you can leave the money in an index fund and check in once or twice a month and people can use the

ira for stocks but get back on track, this idea you can't beat the market because efficient market hypothesis said the stocks were valued here is what i feel about that one. it's bogus and the people who presume it putting aside the fact that i did consistently beat the averages every year at my hedge fund and giving my clients a 24% compound annual return after all fees over the course of 14 years, markets are not perfectly efficient. they are often irrational and igno ignore things and make mistakes every day and that's a major reason why you can make money picking stocks these are good for your portfolio. this free market economics is a lot of communism and makes sense but it doesn't necessarily work in life. so why the heck did i bring up the efficient market hypothesis in the first place if it's a bone-headed idea if it's not speaking to we know for a fact that markets are all

kinds of inefficient all and it's still a very useful idea as an ironclad law of the universe, it can't help us as a rough guideline, it can lead us in the right direction markets do try to be efficient, they aspire to efficiency when a company reports a fantastic quarter the stock will spike because that's the data that can get baked in quickly when the federal reserve changes policy, it won't raise interest rates as previously planned that's huge news and takes longer to bake when the fed got cold feet that took weeks and weeks to work its way through the averages stocks that benefit from lower rates and there is a lot of them will sore because it takes time for portfolio mangers to reposition they can't just go in and out. they have too much money under management, we're talking about huge slugs of stock here no hedge fund or mutual fund

will buy or sell at once we reach an equal librium so let me give you the "mad money" version. when there is a widely held consensus shows view about something, positive or negative it will be discounted by the march set so when everybody is feeling euphoric about the stock market, that's baked in stock prices already and when everybody is worried about the slowdown it's baked in and hunkering down in fear of a bad earnings season don't expect stocks to get slammed. people aren't into disappointment when all talks heads and money mangers are telling you to be afraid of the same thing, you don't need to be afraid everybody else worry for you from the most investors believe something will happen already. it's easy to fall pray to the group think when you're managing

your own money management is infectious when you see experts come on television and say the same thing while the newspaper prints stories and your friends echo this stuff back to you it only natural to i a sssume it must be true but that doesn't mean it's going to move stock prices by the time you get any real n consensus on the issue, that move is over you missed it. you want to be a better investor, don't tear your hair out fretting about the same thing as everybody else. instead, you should worry about the things other people don't seem to care about because the real threat is the one you don't see coming dave in virginia, dave >> caller: hi, jim, how are you doing? >> well, how about you >> good, i'm from virginia, i was born in plymouth meeting and i was actually raised in summit. >> oh, my, we are doople

gangers. >> caller: yeah. 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 would say that at our rage in a normalized interest rate environment, we should be about 60% in stocks and the kids should be around 85% so without setting up new trusts, shouldn't we invest the minimum amount as if it were their money now and if so, allocate stocks half at 60% and half at 85%? >> i think the 85% all in for younger people is definitely right. for you, i assume you're my age. i think 60 to 65 would feel like we're going to go longer than

the actual table so i prefer always to put a little bit more stock in there than most think if you want to go 90 for 20-year-olds, i would bless that, too. we have to have those assets in there to make a lot of money over time and thank you for the kind comments. let's go to frank in new york, frank? >> yes, jim, thank you very much this is the first time in a long time. >> okay. >> caller: i like to ask you, what's the difference between general stocks and over the counter stocks and should i view them differently >> they used to be very different. one was done by different -- i know, in my day when i was at gold man, we had over the counter was different from the list and these days it really blended. i wouldn't worry about it. just stay focused on the fund mentals. listen up, don't sweat what they are all sweating pay attention to what others are ignoring on "mad money" tonight, to trade or not to trade. that's the question. how to come out on top by

pointing the different ways to approach investing then feel like the market speaks a different language, i'll tell you how to decipher hidden messages in the tape and when you see a hot ipo, should you consider buying the company or not? no so fast i'll tell you why. stay with cramer. >> announcer: don't miss a second of "mad money." follow @jimcramer on twitter and have a question, tweet cramer. send jim an email to mad money @cnbc.com or give us a call at 1-800-743-cnbc miss something head to madmoney.cnbc.com.

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look, i told you before the break when you pack into a crowded trade, you're playing with fire. if everybody is on the same page with a stock, that means easy money has been made, people. doesn't mean you can't profit from something obvious that does happen when you're late to the party, you're going to have lower returns and higher risk. that's the nature of the beast fortunately, nobody is putting a gun to your head that would be terrible, right and forcing you to follow the hedge of fund. in fact, you don't think about having to spot top and bottom if you don't want to. there are a lot of ways to invest some takeless work for example, there is timing you can try to call every stock

for a near term bottom and selling them when they look toppy. you can take a large hold and lightening up on part of it when it gets over extended and buy it back when the stock sales off and keep your bat on your shoulder waiting for the perfect moment while the whole market sales off giving you chance to buy your favorite stocks for much less than they are worth. back in my hedge fund, i love doing this stuff if you have the time, the inclination and right resources, it's a terrific way to make money but if you've got a full-time job, this whole approach is lunacy and i say that as someone who knows a lot about crazy. regular people who work for a living don't have time to stare into the tape all day. if you worked the night shift it's not a good use of your precious free time more importantly, it's not worth the agitation and that's why coming here every night to do the show i focus on the market like a hawk so you can take a less intense approach to investing, one that lets you go to work and have a personal one. how should you approach the

market if you're not prepared to devote your entire waking life to watching stocks what's the safest way to handle individual stocks part time? let me say index if you beliefu wonderful thing. important to the show did you listen to it 40,000 times. if at any point, what i'm describing sounds too daunting or time consuming, don't hesitate to say individual stocks are not for me, throw your hands up and put most of the mad money, the cash you invest that's not part of your retirement portfolio money into an s&p 500 i tell you this a lot because it's good advice being a savvy stock investor takes work being a savvy index fund investor is easy or relatively so sure, if you manage your portfolio well and do the homework and stay disciplined, i think you can beat the s&p 500 in different stocks. i've seen it happen hundreds of times but not everyone has that time and temperament, not

everyone is comfortable taking on more risk to chase a higher return and that's perfectly fine you need to do what is right for you. keep that index option in your back pocket. assume you want to try to profit from the individual stocks, let's 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 get-go you need to accept the best is enemy of the good there is no point in trying to buy ourselves stocks at the perfect moment nobody is that talented. making the attempt will drive you nuts you need to accept results good enough to chase perfection for example, if the stock you like gets hammered down from 60 to 50 and then you pull the trigger but then it goes down another couple points before it bottoms and rebounds to 60, don't kick yourself for making a mistake. you didn't screw up. you could have made a couple extra points if your timing was flawless but a win is a win. i don't believe in buying whole.

wait a second, cramer is breaking the orthodox. no i believe in buying homework buying whole to me is reckless meaning you need to keep researching your companies after you own a piece of them and if something goes wrong, you have to bail. i think it's a good idea to buy stocks slowly on the way down and sell them on the way up, that requires a certain amount of active management but don't feel compelled to be too active. the last thing you need is to be in and out of stocks with every giration and most gains are in bursts and you're liable to miss them again, if you have the time and inclination to trade, that's great. however, most people don't when you have a full-time job and you're trying to manage your own portfolio, you have to be willing to sit tight there will be sell offs and rotations out of one group into another and crazy action on a week to week and day to day basis. you don't have to constantly

adjust your holdings based on the moves. that would be wrong. if you believe in the stocks you own and you shouldn't own anything you don't believe in, just sell them then you should be willing to stick with them when the backdrop gets tough. you can't just bail. ideally, you wouldn't be able to trade in and out but like i told you, the best is the enemy of the good don't chase perfection practice when everybody is panicking over the latest crisis, you'll be tempted to sell everything and you might avoid a substantial decline by bailing on the stock market but sooner or later, you have to get back in. the whole point is how to sell high and buy low unfortunately, it's hard to nail the timing here. if you dump everything, there is no guarantee you'll be able to buy your stocks back before something changes and the market comes roaring back like in the spring of 2019 after jay powell told us some rate cuts might be on the horizon wow. okay that would breathe new life into

the economy. so what's the solution if you don't want to give yourself a panic attack every day, keep doing the homework so you know what you own. when your stocks surge higher, ring the register on part of your position and raise cash you need to take something off the table. that's my ironclad rule. a little something when your stock is hit put that cash to work buying more shares but you don't have to nail every short term top and bottom, that's too hard. to trade or not to trade is the question if you're trying to be an investor who doesn't need to stare at the tape all day long, it's noble in the minds for the sling and arrow of outrageous fortune. you need to be good enough that means you shouldn't waste your time trying to anticipate every guy ratiiration in the ma. let's speak to ryan in new jersey, ryan >> caller: boo-yah, jim, how are you doing? >> doing well.

how about you? >> caller: i'm doing good. doing good i'm looking to invest my first $20,000. i know putting the first 10 into an s&p 500 into an index if you believed fund is a smart move but what should i do with the other ten. i don't have time to do my homework -- >> if you do not have time, you must and i don't want those small sector etfs, i prefer a total return fund with all sorts of stocks or fund with a high growth i don't want it sector by sector because those funds tend to not make people money because people buy high and sell low. let's go to raleigh in georgia. >> caller: thank you for taking my call. you're the money. >> thank you. >> caller: i was just asking what kind of percentage would you recommend of gold in your portfolio? >> i think 10% is fine i know that it's been terrible but, you know, just like insurance, you don't want insurance to pay off, do you it's insurance

and nothing else all right. don't try to anticipate every move in the market, do the homework on what you own there is much more "mad money" ahead. nothing generates enthusiasm like a newly minted company but proceed with caution the next time you see a company go public being at the right place is the right time is essential in investing. i'll show you why. first, it's the tape talking i'll help you separate the signal from the noise so stay with cramer. don't miss your golden opportunity

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now, at the lexus golden opportunity sales event. lease the 2019 es 350 for $379 a month, for 36 months, and we'll make your first month's payment. experience amazing. the stock market talks to me and i mean that figuratively, not trary to what you may have heard on twitter, i think my left moll molar crown does play music to get read on what the big institutional money mangers are up to and i need to separate the signal from the noise. what do i mean on any given day there might be monster moves in individual stocks all these swings are equally significant so when you see cloud stocks get killed, you natural conclusion to draw is that something must be wrong

with the cloud when a really low group bounces, it's not much of a stretch to assume maybe the pain is at last over but that's too easy, people the truth is some of the moves are a signal and some are noise. it tells you that the stock will probably keep moving the same direction, noise on the other hand is noise to borrow a line from one of my favorite characters mcbeth noise is a player that struts his hour upon the stage and heard no more. it is a tale told by an idiot full of sound and furry signifying nothing in other words, while a signal carry as message, there is no real take away from noise and would have been an investor distinguishing one from the other, how do you tell when a major stock swings really harolds something larger or should be ignored. what makes themeaningful,

we have single day advances. good stocks can get ahead of themselves rallying too far to fast but the technical term is called over bought or the williams percentage we talk about these on tuesday and off the charts when you're over bought, it means pretty much everybody wants the stock at a given level and purchased it even the highest quality company can have an over bought stock and when you run out of buyers, you get a pull back but it doesn't tell you anything other than the fact the stock can question, needed to take a breather and digest the gains. at the same time, bod stocks can rally and for similar reasons if they get over sold because they have come down too quickly, you need a nice over sold pass this is the rally that doesn't convey much information. it's technical it's noise the stock got over sold and unless something else changes, it can go back down once it works off the bounce, head and shoulders down and down with ridges i bring this up because when you see dramatic swings, in digital

stocks, your mind will draw a conclusion and it's connection to the fundamentals, the real world facts is how the company is doing you think they relate. other times the action in the stock is noise, not a signal and you feel foolish if you take your queue from that action. those that want to know more about this can go back to the cannon on stock markets right here wow. early release, no doubt. confessions of a street act tells all where i describe how easy it is to see a stock move a point and convince yourself something is moving underneath i describe a move of a point, an anatomy one-point gain you have more buyers and sellers in a way totally unrelated to the actual company disturbing, don't you think? of course, it's not just the technicals there are plenty of other reasons why a stock might explode higher and sometimes the

market and that mistake gets rolled back. i want you to consider the cloud computing stocks after the sales force, the most majestic told us of the acquiring software data and all stock transaction. the pin action from the tabloid deal was very positive investors figured that all the other cloud plays might be a potential takeover target, too, service now, workday, adobe, z scaler they roared higher on 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 tieup was more of a one off transaction. sales force needed a data analytics platform and had a unique opportunity which is why they agree to the huge premium well, sales force wanted them. when wall street realized that the other cloud place wouldn't be bought any time soon, their

stocks just plummeted. oh, brutal day once again, it meant nothing the only take away from the pull back is they never should have been up in the first place because the tabloid noise was sue genjen jenners. all right. there is a lot of signal that's obvious. the company report as blowout quarter and it's stock force obvious and analysts cut estimates, stock plummets obvious. that's business as usual and why i like to look for the unusual the company catches an analyst downgrade and stock goes up, interesting signal counter intuitive. in my experience when a stock refuses to go lower, it means that stock is putting in a significant bottom and ready to rock higher. i like that. by the same token, when a company reports a great quarter and the stock gets slammed, oh, boy. it means wall street believes this company is looking at the last good quarter.

that happens very often. when your stock falls on positive news, that is the definition of a possible top for the most part, you can't decipher hidden messages except in some rare cases you probably shouldn't even try it's important to know what is working and not working in any given matter and market but you can't let your money management decision be completely guided but what's in or out of style on the wall street fashion show i always tell you. that otherwise you own stocks just because they are going higher that's a terrible place to be because you don't know what to do when they start coming down the bottom line, when you're evaluating a stock, take your cue from the fundamentals of the underlying company don't put too much significance on the share price sometimes you can extrapolate a great deal from a big move in an individual stock but more often, it telling you something you already know or it's just noise that means nothing

let's go to dale in florida, dale >> caller: boo-yah, krcramer, first time-long time from the university of florida. >> love that go gators. >> caller: in your book "real money" you said a company doing an in the hole secondary is not one you want to be invested in is this without exception or okay for a not yet profitable company to do a secondary offering. >> if there is news driving the stock up and positive news and do a secondary, i might get behind it on a case by case but i'm just typically, i'm suspicious and critical and that's the way to play it. how about adita in ohio. >> caller: boo-yah, jim. >> boo-yah >> caller: i'm a long-time listener and appreciate you taking my call. >> come on love it. what's going on? >> caller: you always suggestion owning index funds in a portfolio. >> absolutely. >> caller: my question for you is two-part.

one, what percentage of my portfolio should be an index fund versus individual equities and number two, you also suggest owning index funds that track the s&p. do you also suggestion you should own sector-related index funds in addition to a general s&p for example in health care >> no, i definitely don't want sector related those are wrong. i want the full plan that's why i like the s&p 500. i think it should be 85 to 90. the rest is mad money for individual stocks you can make a lot of money in. index funds are the bedrock. i wish it weren't the case u bu got to be worried too. individual stocks can make you worried. >> fundamentals matter, there is much more "mad money" ahead. there is a big wave of ipos. don't miss this. you may want to do the right thing but if it's for the wrong reason, it will cost you

i'll explain i'm taking your questions tweet by tweet so send them my way #madtweets and stay with cramer. who says our bank isn't tech enough? everyone, look at your phones.

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all night i've been warning you about the dangers of being a follower when everybody expects the same outcome in the stock market, there is a good chance it won't play out as expected because it's priced in you need to be extra wary of the ipo cycle. we have seen this pattern over and over again we get a delusion of deals many explode higher and are terrific

and flooding the market with new stock supply that drags us down. the stock market is like any other market it's too much supply, price of going lower, the problem is when ipos are making people fortunes, you know what? you tend to get a palpible sense and we get slammed we see this happen so many times. look, 2019, the latest ipo craze. one that was spearheaded by a deal that worked very well but then gave way to the likes of lyft republican investors and market sold off hard and that was a brutal month it didn't help president trump ratcheted up the intensity of the trade war and while the pain doesn't last, it's something you could have avoided if you listen to me ranting and raving about

how the massive uber deal would be like and let's look back at 2014 because that's the most recent example of what is going on the market was overwhelmed with a way of deals in two earning streaks, the cloud based software stock, service and the bio tech in january or february of 2014 these newly minted software services kept roaring higher and higher but as the ipo flood gates open, i started to get concerned. in a real bubble, the kind that can devastate a descent portion of your portfolio, you often get a slew of initial public offerings to cash in in the public market but as this process comes on, itdeclines i quality until the end of the move we're scraping the bottom of the barrel. by the way, that's what we saw play out in the big one, the technology stocks of 2000 as they rush to come public and saw

something similar in the first quarter of 2014 as the software and service companies did the same thing we had a lot of secondaries. those were bad that's why i came out here and warned you about the dangers of ipo mania. there is one sure fire way and that's flooding with lots of new supply when tons of companies come, we get a supply glut. money manger haves to sell older more established software as service companies like sales force to raise cash and i also warned you that eventually this ipo bubble would burst sure enough, the stocks that came public with huge spikes ended up losing fortunes and took many of them years to recover. you had to be very selective at the time because most of those stocks were coming public with incredibly stretch valuations if they didn't have earnings and didn't have revenue. the actual winners were few and far between. the draws vastly out weighed the rare nuggets of gold

that's what happened to ipo overload even the best cloud stocks that came public, the ones that are cloud royalty took a long time to bounce back from that ipo overload don't forget, hundreds of low quality companies that became public went bankrupt 2014 wasn't nearly as bad but caused a brutal downturn in the stocks and of course, we saw the same thing in 2019 there were winners right out of the gate beyond me and zoom but for every ipo that worked there was another that fell out of style, the ubers and lyfts and most of the chinese ipos that are risky because china doesn't have the same riggoorous corport government standers and put money to work, they need to raise the money by selling something else and when there are lots of large deals, they need to do a lot of selling so companies need to be sources of funds and if you believe you'll make a killing in an ipo, you don't care how you raise the

money. this leads to mangers desperate to raise cash and aren't disciplined because price is irrelevant to them and that helped fuel the market in the weakness of may 2019 around the huge uber ipo. remember, the bulk of the new money that comes into the market goes into index funds now. they can't participate in ipos because these stocks aren't in the industry yet the actively managed funds that participate, they don't 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 initial public offerings, remember, it pays to be causous the bottom line, as much as i love anything that generates enthusiasm for the stock market and you know that, nothing does like ipos, you have to be careful when we get a wave of new issues they start out strong and generate a lot of euphoria and it burns out and new stock supply can weigh on the market

keep that in mind the next time you get excited about a bunch of red hot deals and stick with cramer

when you're picking stocks, be careful about doing the right thing for the wrong reason let's say you find a great stock and buy it and the stock goes up natural to conclude it's going

up for the reasons you liked about it in the first place but you see that's not always true you might think a win is a win but it's more complicated than that if you don't understand why a stock is moving up or down, you're probably going to be confused when it stops doing that and goes in the opposite direction and when we're confused, you make really lousy decisions. for example, there are a bunch of excellent well-run companies, maybe you want to buy clorox there are lots of logical reasons to like both but like i told you, logic is rarely what drives the stock market on a day to day or minute by minute basis. pick up clorox because you believe in the ceo and his team or like the dividend or think plastic and fuel cost will go down that will boost the gross margins. buy the stock and it explodes higher what is next why is it rallying it's very easy to tell yourself i nailed it, this market is finally giving clorox the credit it deserves. when you buy a stock and it goes up, you were right why would you second guess

yourself when you're right because maybe you were just lucky. as i told you before, it's better to be lucky than good rack up a nice win you need to ask yourself if you were right or if you simply happened to be in the right place at the right time what do i mean rotation, rotation, rotation there are times when the consumer package stocks roar higher for reasons that had nothing to do with the underlying companies clorox and proctor are recession stocks because they hold up, their stocks roar when we get lousy economic data. if you buy the stocks because you believe in the business and go higher as part of the sector rotation, that has nothing to do with the business. you still have a win the bank isn't going to tell you you can't take that money because they don't acre cement pro -- accept profits are rotations. you don't want to get caught with your pants down when really it was bfwas benefitting from rotation this is what i meant about

filtering out the signal from the noise and i know it's really hard to do why? because of confirmation bias when you have a thesis and new evidence seems to prove your thesis correct, the natural thing is to believe you were right all along. you should approach that feeling with skepticism, maybe you're right. people are right about stocks every day but maybe it's a coincidence and you should ring the register it's helpful to understand why a stock you like is going up or down when you have a win, don't assume that he simply got it right. think about what it means if you're merely in the right place at the right time and proceed with caught. stay with cramer this is mia.

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you know i love hearing from you cramerica so let's take tweets first up, we have a tweet from amy that says thanks for the shoutout on the show tonig tonight @jimcramer my hubs and i have big news. what's the first thing we should invest in for our first child? some say a college savings plan is first would you agree? gift to minors, that's what you should do. it's a great way to put money away and look, add a stock to the mix only to teach a child what a stock is. here a tweet from steve bradley 3 who says hey, what if you start buying into your position but the stock jumps before you've bought your entire position target position. do you still keep buying no, that's what it is called you missed it. but it's a high quality problem. you bought some stock and now as

it goes up, you sell it. it's a shame i know we should always -- we don't want to buy and then have it run away from us. that's the big flaw in my plan of buying down in a pyramid style. it happens but if that's the flaw you made money, couldn't me guilty next a tweet from mikey who says @jimcramer, huge fan, our first grandson was born in november and we continue to buy gold on his behalf but would love one or two long-term growth stocks you would recommend that we might start him off with. we'll start with index fund but say look, mcdonald's, disney, some people don't like the fast food but it's where you're going to take them and happens to be the case maybe you're the vegan that never lets it happen i want kids to understand what stocks are so you have to buy them something that resonates in their life hey, maybe you'll have a pizza

dominos. here we have a tweet from bender forest who says i heard you talk about your father many a time over the years, mr. cramer, and the love in your heart for him is always evident. i'm sure he was a very proud father my father worked very hard his whole life he worked until he was 92 when he passed away, he worked the last month before he died and instilled in me an attitude toward as long as you're honest, things paid off in this country. that's what he said over and over and over again. honest and hard-working people get paid off in this country i believe that i know that such a thing is 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, i'm a grandfather of four, you lucky guy. i have the ability to do this. is it a good investment idea to give my grandkids under 10 about 5 k in the russell index

you're the man that's exactly what you should do and you're very thoughtful and that will pay off in space for your grandchildren our next tweet is from @crejhr 1 camp kated who says cramerica gets a callout in every show but don't forget the loyal carmanians that follow your every move i try to buy land in canada once i was not able to. drives me crazy to this day because i love canada so much and you are our best friends and we americans will never forget it stick with cramer. your daily dashboard from fidelity. a visual snapshot of your investments. key portfolio events. all in one place. because when it's decision time... you need decision tech. only from fidelity.

you need decision tech. dto experiencer gthe luxury you desire on a full line of utility vehicles. at the lexus golden opportunity sales event. lease the 2019 rx 350 for $389 a month, for 36 months, and we'll make your first month's payment. experience amazing. i like to say there is always a bull market somewhere and i promise to find it for you here on "mad money." i'm jim cramer and i'll see you next time.

>> welcome to the shark tank, where entrepreneurs seeking an investment will face these sharks. if they hear a great idea, they'll invest their own money or fight each other for a deal. this is "shark tank." ♪ for the most important member of the family. oh! hi, sharks. my name steven blustein. and i'm sean knecht. both: and we're the founders of pridebites pet products. we are seeking $200,000 for 10% of our company.