reacceleration the russell 1,000 valuation iwd. mayo on gold playing for that analyst day. >> do you like mayo on a ham burger. >> i don't like mayo mike mayo blacksneto breaking out. >> thanks for >> my mission is simple, to make you money. i'm here to level the playing field for all investors. there's always a bull margaret somewhere and i promise to help you find it. "mad money" starts now >> hey i'm cramer. welcome to "mad money. welcome to cramerica other people want to make friends i'm just trying to make you money. my job is not just to entertain but to educate and teach you so call me at 1-800-743-cnbc or tweet me @jimcramer. tough days don't matter forever but when they come along you need know how to respond you need a game plan totally developed and ready so you can

decide what kind we are dealing with i wish we could say we always know how to respond but the early days of the decline, well, they're never easy to navigate first, let's borrow a line from the fabulous anna karenina all happy rallies are alike. each sell off is unhappy in it's own way. it's so true bull market sent stocks higher and everyone thinks they're a genius for participating in them big declines much harder they would be the start of a bear market or a glinch. that's why i want to use history to try to identify some of the common qualities so you can figure out how to handle the inevitable moments of weakness without panicking. first let me offer some historically constructive words of relief, sanity and real, not

phony, but real assurance. there's only been two truly horrendous sell offs since i started investing in 1979. the one day crash of 1987 and the rolling crash of 2007-2009 i could have down the nasdaq crash but the s&p held up well let's deal with these two big ones head on because they're great examples on october 19th, 1987, black monday, the dow fell 508 points. 22% in a single session. 22%. i was trading that day and even as the previous week had been one of the worst weeks in market history monday hit fast and it hihard it was almost as if there were no buyers to be found from dow 1,738 where it ended that day. it was selling off right into the close. i remember thinking. i remember thinking saved by the bell except it felt there weren't many left to be saved.

what most people don't remember is that the week before was one of the market's worst weeks ever as the dow already plunged from 2,500 to 2245. that encouraged bargain hunters. they thought they could flip into that strength and that strength never developed the weakness occurred the next day into what became known as terrible tuesday where the dow actually kind of just broke down. the markets simply stopped functioning but i was there and i was actually able to calculate that bottom. the actual bottom that occurred. then the fed chairman stopped the decline in it's tracks when he said he would provide all the liquidity necessary to stabilize the market i still remember that green line when it came over your screen. he enlisted multiple firms

around wall street and the market's remarkable two-day rally that took us up more than 500 points the effects of the crash lasted three months but do you know that it took almost 16 months until the averages returned to where they were trading before this big break down the bear market began october 2007 it was a totally different animal the dow fell from 14,164 and didn't bottom until march 9th of 2009 when it landed 6,547. we didn't return to that 2007 level until march of 2013. why did one sell off and so quickly while the other took six years to unwind? that's the question that defines the two extremes of unhappy sell offs the initial on black monday was mechanical sell off. the first one that i can remember occurred simply because the stock market failed to be able to function it was reminiscent of two other crashes.

you may have heard theories about what caused the crashes but most of them were wrong. all three started with the stock market futures, the s&p 500 futures in chicago overwhelming wall street and new york black monday happened because traders didn't understand the powers of the futures market which could flood the stock market with instant unseen supply these days we accept that the futures are worth watching but it wasn't like that back then. because they were relatively new instruments the power of the futures snuck up on the peoples because they were a much smaller market than the stocks themselves because of the greatly quiddity thougrea great liquidity though, they became the most powerful drivers of stock prices. even more powerful than the per forma forma formance of what they represent. now featuresual. we had a big run going into '87.

it was a remarkable multiyear rally with nary a substantial decline. i left goldman sachs to start my own hedge fund because my returns had been so bountiful. it created such stupendous gains that a group of sales people started selling what they claimed were insurance policies that could lock in gains and stomp out loss for big funds so-called portfolio insurance involved what was known as dynamic hedging. it sounds so dynamic hedging where they said that using futures you could ensure that you would no longer be exposed to stock market risk say down 5% or 10% or whatever the policy you took out determined the idea was that they would let you side step that i have to laugh. side step the losses it's impossible to do that unfortunately much like communism portfolio insurance works in theory but not in life.

if anything it accelerated decline and caused incredibly large losses for the actual insured. the people that sold the policies were sharcharltons and never exposed as much but that's exactly what they were don't believe anyone ever tells you any different. of course at the time, we didn't know that the power of the futures could cause a crash but we figured where there's smoke there's fire if the markets crash there's got to be something going on with the economy. there simply had to be a recession lurking. there had to there wasn't any economic correlation with black monday at all. it was between chicago and new york and when the treasury department concluded that the futures set off so much selling

that some specialists firms on the floor of the exchange and some brokerage houses step up and stabilize the tape and the latter had no duty to do so but they were supposed to do it and they found many didn't do their jobs i was fortunate enough to be in cash on black monday havi having liquidated earlier in the previous week because the market acted so badly it made my career. for the next 14 years i could show that i had side stepped the crash for real they thought i was a genius, but the truth is i was just frightened of the market and wanted to regroup. but it's better to be lucky than good so here's the bottom line. sometimes crashes have nothing to do with the economy they're caused by the mechanics of the market. stay tuned for more examples of this kind of decline and the bear market of 2007-2009 so you

can figure out what to do when they happen. let's go to keith in texas keith. >> hey, jim. how are you doing? >> i am doing well, how about you? >> my question is, how do you decide when a correction like we had back in february has made a bottom and it's okay to get back into the market? >> i like to get a sense of whether the selling has run it's course first you get a level, where it bounces and then it comes back and it tests that level. if that second test as we call it holds, then it's more than likely that you have to come back from the sidelines and -- >> buy buy buy. >> sometimes crashes have nothing to do with the economy they have to do with the mechanics of the market. knowing how to respond is essential to your money. on "mad money" tonight my strategy session continues don't miss my take on the

microcrashes that maybe short but could have lasting effects on your view of investing. then you might know chicken little and the boy that cried wolf from fairy tales but they also play a role in the stock market is it all the fed's fault? not always i'm eyeing the rational reasons that the market declines when it comes to the central bank. so stick with cramer >> don't miss a second of "mad money. follow @jimcramer on twitter have a question, tweet cramer, #madtweets send jim an e-mail to madmoney@cnbc.com or give us a call at 1-800-743-cnbc miss something head to madmoney.cnbc.com. ♪

some things are too important to do yourself. get customized security with 24/7 monitoring from xfinity home. awarded the best professionally installed system by cnet. simple. easy. awesome. call, click or visit a store today. welcome back to a special how to deal with all sorts of declines in addition to "mad money. the crime of 87 wasn't really related to the economy shocker. so it was okay to buy stocks 1987 was a rare opportunity that

took a little time and when it did, oh, lala. it was the first in the s&p futures exercising their power over individual stocks they were like play things for stocks sadly it was the first of many which brings me to the fabled flash crash of 2010. it never came back to stocks because they didn't know their value could be destroyed so quickly. almost wh imsically. who wants to keep the ones that can blow up in the blink of an eye? it was pretty much the same deal as black monday of '87 the futures overwhelmed the stock market and buyers just walked away betting there had to be something substantive behind the destruction. it couldn't just be the machines breaking down for heaven's sake. it started may 6th of 2010 it lasted for 36 minutes in the 36 minutes the dow fell

almost 1,000 points from the 10,000 level it was memorable for me because i happened to be on tv at the same time. some money managers had been speculating that the market was going down precipitously it was on everyone's minds back then because there were worries about what would happen if the greeks default on their bonds. perhaps because i have the benefit of trading on black monday i recognize where it was and when it was happening. the futures were overwhelming stocks we didn't know at the time but a gia giantic order caused fear and many buyers disappeared. they didn't want to wait around to find out what was causing the landslide. they just wanted to get away from it as fast as they could. i called it a phony sell off because it had no basis in economic reality which made it a tremendous buying opportunity.

>> what we're seeing right now is unprecedented. >> that is not a real place. >> it's too bad the system obviously broke down we're going to find out there was a glitch and machines fell it obviously broke down. no, the market didn't work it broke down. the machines broke down. that's what happens. >> it didn't work. the machines broke down and that's what happened more on that later >> many people didn't believe that equities could be that fragile and it's shocking. i hope that i have taught you that shocks are not hard assets. they're subject to whims that could reduce their value in a heartbeat including mechanical issues anyway, the market regained it's equilibrium but not before another round left the asset class entirely and never came back. >> okay how about the dow falling right at the open. that was related to fears that

the fed was itching to raise interest rates many seem to forget but back then the chinese market was the most dominant negative story out there people said it could collapse from too much leverage and too lily quiddit little liquidity somehow i find myself on air all the right times to witness the events that had been a monstrously ugly day as a fed official late in the afternoon suggested it was time to raise rates despite the chinese sell off it was an aggressive statement that demonstrated a cavalier attitude toward the markets ugly and fragile mood when we came in on monday august 24th we heard large sell orders and places for major stocks. we weren't ready though for the gap that we saw. big capitalization stocks were shedding hundreds of billions of

dollars of value with many 20% down since the market open it was very tough to tell what the real prices were the confusion was that horrific. it was like the fog of war but the dow ended up tallying a decline of about 1,000 points when the smoke cleared at 10:00. i and my partners were squawk on the street were pretty stimied at the time. i remember turning to chat about the sell off his reaction, priceless. >> the dow is down 1,000 points. and the losses on some of these names unh, verizon, ge down 13%. >> i don't -- this is -- i have to make some phone calls because these are -- >> you have to find out -- >> these are enormous moves. >> i got to make some phone calls. i mean, i remember when he said it i said yeah, that's it. i got to make some calls that's how confused we were.

we figured there had to be something. you get that kind of decline, right? there had to be something going on in the economy. somebody knew something we didn't something mysterious or nepharious maybe china collapsed or something in europe that warranted the decline. i was suspicious though because some of the hardest hit stocks were the recession proof names especially the biotechs which for some reason declined harder than all the rest of the market. think about that that shouldn't be happening. if there was really something wrong with the economy, that's when people buy. those stocks are often the safest of havens in moments when it's the economy at work once again, i suggested it was machines causing the problem that the futures should overwhelm the stocks and that the computers, they had gone haywire. by mid morning we learned that was exactly the case and the stock market then underwent a beautiful

metamorphisis. strong buyers took advantage of the opportunity. it was an excellent time to buy stocks why was there such fear and confusion at the time of the 2010 and 2015 mini crashes i think investors weren't ready for either because post 1987 the government put in what were known as circuit breakers. they were supposed to cool these declines by stopping trading momentarily but they created a false sense of security that oddly still exist today even as they failed to work properly on both occasions and did very little to stop the destruction so please, don't believe it. fear can't be legislated or regulated out of the market. it will always be there. there will always be people that react horribly after an initial event even if it's mechanical and not sub ststantive in nature

if you can determine it's caused by the mechanics of the market breaking down then you can have a incredible buying opportunity. stay tuned and recognize you have a first class panic on your hand nobody ever made it on panicking but boy oh boy did they coin money taking the other side of the trade. we'll go to jeff in florida, jeff. >> it's an honor. >> you are very, very kind what's going on? >> you're welcome. here's my question, jim, is there an equation or formula or rule of thumb anything to dictate when or especially what percentage of profits to take off the table when really good gains are up for grabs >> the show is influx at all times. i used to tell people when

things are really bad at the market, you know, look, take some off the table but what i have learned is you have to be a little bit more patient. a really good stock goes up 50% and then you start taking some off and then 100% and then you take out your basis, how much money you put in and then you let the rest ride. i'm not as anxious to trade or recommend trading as i used to be i like longer term investing remember nobody ever made a dime panicking. if a sell off is caused by the mechanics of the market, you may actually have an incredible buy buy buy. >> buying opportunity. the market's falling the market's falling it's more than a nursery rhyme it could teach you a lot about investing. then don't get fed up. i'm break down the fed reserve's role in the market and a sell off versus a buying opportunity? the key is a little something i like to call systemic risk stay tuned and i'll explain. stick with cramer.

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join for free + lose 10 lbs. on us. here we are. back discussing what to do in a sell off. >> sell, sell, sell. >> and how to figure out what the right approach is given how difficult and different they all are. we covered the crash of 1987 one of the most horrific and quick declines imaginable and yet there was no economic ramification whatsoever. many thought we had to be on the verge of a recession because the stock market projects what is supposed to happen in the future it's kind of an early warning system but not that time it was a sell off full of sound and fury that signified nothing. same with the flash crashes in 2010 and 2015. the sell from 2007 to 2009 was exactly the opposite it was a multiyear decline that

started when the federal reserve raised rates 17 times in lock step trying to cool an economy that had already the most danged of sell off. what we call systemic risk decline and it's one that we can't rifle with and we have to spend some time with fortunate it don't happen very often. call it say twice in 80 years. the first being the great depression unfortunately every time we have a severe couple of day decline, we hear this great recession bear market invoked. lots of investors believing that the sky is falling and they never come back and they lose money and it's breaking my heart here so let's set the stage back in october of 2007, the stock market peaked at a little more than 14,000 when as i mentioned the fed raised rates over and over and over again 17 times and the economy after teetering for just a bit fell off a cliff and took the stock market with them it's one of those things that you could have seen coming if

you had paid attention and done a lot of talking and homework or at least paid attention to me. went back on august 3rd of 2007 the fed continued to raise rates oblivious to the damage it was doing to the real economy. >> my people have been in this game for 25 years and they are losing their jobs and these firms are going to go out of business and he's nuts, they're nuts they know nothing. >> cramer. >> i have not seen it like this since i went for half a million shares and i got hit in 1990 this is a different kind of market and the fed is asleep >> okay but here's the thing. >> he is shameful. >> they know nothing >> they know nothing >> what did i mean by that. >> i haven't talked to one wall

street firm about problems in the mortgage market. pretty much everyone that followed this market which is incredibly important to the healthy economy knew there was a lot occurring. and talked about how many mortgages of the 2005 vintage. he used a term that i associate with fine wine it was never supposed to happen again. the break depression i was aghast but i had a lot of of friends at a lot of firms so i wanted to see if this 2005 vintage thing was in trouble everywhere i got off the phone and the problem seemed to be spreading like wildfire. and that's why i went off so strongly on my rant. oh well, the fed didn't listen

especially bill poole who at the time was an important fed official years later i found out that my rant was brought up and the fed had a laugh about it we then had some savings and loans thought to be too big to fail including two of the largest brokerage houses i did my best to get people out including going on the "today" show to urge people that needed money near term to take it out of the stock market lest it be lost >> whatever money you may need for the next five years, please take it out of the stock market right now. i don't think many listened and

the market fell another 40% before it bottomed if you had had bought any time before it was cut in half by march 9th of 2009, you did lose a fortune. so how do you know to avoid buying this kind of dip? isn't that what we need to learn? how do you avoid this kind of dip versus buying that black monday opportunity of '87? the first thing you have to ask yourself is about the economy. is business really getting crushed? is employment to important when considering the direction of the stock market falling off and falling off hard is the fed raising rates when there's signs of real cracks like major firms going under or big companies unable to pay bills? are there actual runs on multiple financial institutions throughout the country and not just in one area if the answer is yes, then you have a decline that could be deeply rooted and joined at the hip with the real economy and that is systemic risk. meaning that the entire country could collapse that's how it was back then.

and it's why i get so angry when people say it's worse than 2010 and 2009 only twice in 80 years you don't expect systemic risk to continue to happen. that's not the way it works. second if you want to know if there's anything in place that can save the economy and turn it around that's important too. even as the government tried to intervene with a troubled asset program and the sec tried to institute rules that forbade short selling, none of those things mattered. what brought the market out of its funk was a statement by ben bernake that he would no longer let any more banks go under in our country he was no longer worried and a bottom was put in. were there ways to spot the bottom one i monitor closely was the standard and poors that's a paid

subscription product it measures buying and selling pressure we were getting sales much worse than that near the bottom. it was a sign that it's time to buy. who has been pessimistic for concern about stocks but there's been a lot to say and do and then changes his tune. the best example came from the late, great mark hanes that had this to say back then. >> however, i'm going to step out on a limb here -- >> this is the big, old on we have been waiting for this. >> i think we're at a bottom i really do. >> look at that. march 10 of 2009 the day after he was on 60 minutes. it bottomed. now it certainly made a ton of sense but before you say to yourself what happens if no one

warns you again the next time, well, i have good news for you, a little sobering but it's good. if you waited long enough, six years to be exact, you actually did get back to where you were before the bear market began all right. yeah but if you sat tight you eventually did get back to even and since then you made a lot of money. it would have been better to take something off the table but one of the reasons why i'm always always, always stressing that it might pay to sit tight is because even in the worst stock market and economic moment in our lifetime you still didn't buy if you bought and held here's the bottom line be ware of the chicken littles of the world be mindful that there are tons of people that cry wolf every time we're down for a couple of days but then again, there's been one time where it paid to actually sell when there was real systemic risk in the u.s. economy it's okay to do some selling but otherwise,ust sit tight and wait for those signals to

buy. donna in pennsylvania, donna >> my husband watcheion. >> fabulous. >> i want to invest $5,000 for my grandson's first birthday for him to use for college or a down payment on a house when he gets older. i know that it's a vulnerable market and i want to invest long-term. but i want to be defensive against sell offs. so what is my best way to go. >> here's what we're going to do we're going to divide that 5,000 into 1,000 each time you're going to put the 5,000 in, 1,000 at a time. why don't you do this. wait every other month 1,000 january, 1,000 march, until it's all in. that way if you do get a big sell off in the interim then put all of it in that's left at once that's my rule and it's worked for me literally since 1979. jacob. >> hey, mr. cramer that is jay for tallahassee

florida. >> let's go for some barbecue. >> yes, absolutely my question for you, sir, is when there's a bear market and i have a thought that's been performing well consistently in the past, what factors do you look at to decide whether to get out or if you should hold on to it for the long-term >> in the end it's going to come down to if it's a bear market we're going to go for companies with incredible balance sheets that have not borrowed too much money and can ride it out and we'll ride it out with them. sell sellers be ware. be mindful much more "mad money" ahead. i'll explain how to handle sell offs in the wake of interest rate hikes then all the ways to sell off, think again, my strategy session continues and i'm taking all of your tweets. so send your questions my way and of course stick with cramer.

in tonight's special survival guide addition of mad money we're discussing how to deal with brutal sell offs

i have told you not to be glib about the systemic risk sell offs that involve the potential collapse of the u.s. economy but those are easy to spot because it will seem like the world is falling apart like in 2008 you don't need me for that but now i want to help you game out the most dangerous kind of crash. caused by a broken market in a healthy economy. the best way is to recognize that there's a process, one that you can spot so i like to look for what are caused accidentally high ones, stocks of companies doing well and the stocks are falling so low that they're trying to give you an outstanding return. how do you spot these? i like to look at the historic level of dividend yields you have gotten from certain stocks as well as the rate the ten year treasury gives you suddenly it's paid double because of a market wide decline. that means the stock went down and then you're probably looking at an accidental high yield.

as long as the stock has been going down for no particular reason that's why i like to look at companies that aren't particularly sensitive to the economy. second at if the yield level isn't constructive or giving you opportunities, i would use a mechanical sell off to pick stocks that you like and begin to buy them using what is known as wide scales that's what i recommended during the 2010 flash crash pick one of the best stocks out there, a premiere stock and buy some limit orders only don't use market orders because you might end up getting terrible prices. frankly you should never use market orders but it's especially stupid during a crash. if the market did come right back, you have picked up terrific merchandise and amazing prices and then you can flip the price if you want to for big profits or you can hold on to them take a look. i demonstrated how to do this in the flash crash of 2010. >> 49.25 bid this is a good opportunity.

>> that name. >> nothing. >> when i looked at it it's 61 i'm not that interest in it. it's at 47 that's different entirely you have to use limit orders so they just jumped 7 points since i said i liked it at 49. you have to be careful with it. >> that's the craziness i'm talking about and a lot of people end up doing that and remember the limit order advice still rings true we covered how to recognize systemic risk and how to side step it and how to profit from mini crashes how about the rest of the experience, the garden variety pull backs what causes these declines they're a bunch of different varieties. first you have sell offs caused by the federal reserve probably because they're top of mind. that's the most frequent reason. there's a reason it's to try to restore growth. as long as the fed is cutting interest rates almost every decline is a viable one unless

there's systemic risk of course. it's been like that since i got in business. with the economy strengthening and overheating the fed has a different mandate. and the job is to temper growth in order to stop inflation and the fed is right to be worry it's the purchasing power of individuals and makes you spend your dollars and it's less likely to cover your long-term needs but we don't want the fed to break the economy here i'm talking about the break kind like it did when it raised steps 17 times going into the great recession. there's plenty of times when the fed's tightening and stock market wasn't crushed because the economy wasn't crushed however whenever the fed prognosticators will take a big header so when you hear or read lead to crashes. in fact, i have seen plenty that do next to month but there's rational reasons why the stock market should and does go down

when the fed raises rates. stocks are only one of the assets available to individual institutions there's gold, real estates and of course the bonds. gold is a safe haven and every person should hold gold. prefferably bullion. a hedge against a catastrophe that hasn't occurred actual real estate had be a good he hedge but most people don't have the money to invest in the real estate they can buy. they are not reliable as a proxy for real estate. finally bonds is an investment alternative and it's the source of the problem as the fed raises rates. as the fed tightens bonds become more competitive with stocks you'll notice that as the fed jacks up rates, high yielding dividend stocks are going to be among the worst performers because the yields look a lot less attractive versus what they get for bonds and they're not more risky than treasury

please be careful of these stocks as safe havens when the sell off is caused by the fed. they're very different for accidental high yielders that can spread back when the stock is tightening. the fed isn't perfect. i keep talking about the 17 rate hikes because the fed isn't perfect. kept tightening and tightening long after and when they should have been back because the economy is already selling because when that's the case, they can materialize going to the fed meeting and it will continue after you get that pull back and you know that you need to be extra careful not to be aggressive buying any stocks. especially defensive high yielding bond market including alternative stocks not going to work here's the bottom line garden variety pull backs can be gain as long as there's no systemic risk. but the fed raising rates those are trickier although they can

lead to decent opportunities as long as you stay away from the high yielders that become less attractive when the fed tightens and stick with the accidentally high yielders that might give you the bounce when the fed is done tightening. mad money is back after the break. ♪ limu emu & doug

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tonight we are talking sell offs what causes garden variety pool packs. sometimes there's other issues that are important for starters there's the issue for margin as a former hedge fund guy i'm well aware that there's many times when money managers borrow more money than they should. when the stock market goes down they don't have the capital to meet the margin clerks demands including in the beginning of 2018 when funds borrowed money to bet against stock market volatility, they got their heads ha handed to them they were betting the market remained calm, stupid people and

against them they bought the s&p 500 using borrowed money, again, real stupid. when the stock market fell these managers were forced to sell their s&p 500 positions and there were so many doing this once that they ended up causing severe market wide losses. these often occur after several days there when the market is down that's why i'm often reluctant to tell you to be aggressive in the first few days of a big decline. these managers that boy stocks and borrow money they're going to have to keep chopping how do you spot these declines and when they're going to be over do you know what, i use the clock. margin clerks don't want their firms to be on the hook for individuals and hedge funds. or they sell you out of your positions without your say so. i always consider them the butcher and the butchering occurs between 1:00 and 2:00 if the selling runs it's course by 2:45 p.m. i find it to be that specific and i think you have a decent chance to start

buying safety stocks the kind of stocks that tend not to need the economy to be strong in advance like the health care stocks you might also want to buy the stocks of the fastest growing companies with great secular themes that work in any environment. i talk about them all the time what else can create viable opportunities. sell offs from overseas. i can't tell you how often and greece and scyprus and other places do they really impact the stocks of the american companies you have invested in and how much we should pay for them. do you see any real impact do they make you want to pay dramatically less for an individual stock usually the answer is no and you should always assume there are people aren't as important and you would have

thought they know better it's to watch the clock as the sellers need to margined out there's going to be a bottom the ipo related decline. remember at the end of the day stock markets are markets first and foremost and markets are controlled by supply and demand so if they start rolling out ipos, there's a situation where there's not too much supply and demand and most of the new ipos are concentrated and focus on the stocks that are down because of collateral damage. and you want to buy stocks after earnings induced pull back and isolate the sectors and avoid them and instead buy stocks that have been hit in the s&p 500 futures that have nothing to do with what went wrong and then there's the trickiest kind of risk political risk i often find this risk

tremendously overblown whether it's because of strife between parties or trade policies or even all out war with the exception of nuclear war where money should be the last thing that you're worried about. i'm not a political guy and i hate talking about this stuff but with every stock that you own you need to ask yourself does this company have direct herbin earnings risk. government shutdown that could turn into a house of pain. i know political risk is enticingly negative and fearful because there's so many pun dants everywhere waiting in and giving you two cents these guys want to scare you. my suggestion, tune it out please instead look for companies that have nothing to do with the political fray even has the stocks have been brought down by it i see politics used as a reason to sell stocks they may be a reason to sell some stocks. here's the bottom line there's all sorts of sell offs but unless they involve systemic risk they're going to prove to

be buying opportunities. you just need to recognize why the sell off is occurring. and then take action to buy not sell and never to panic. stick with cramer. and kills bacteria to relieve diarrhea. the leading competitor only treats symptoms it does nothing to kill the bacteria. treat diarrhea at its source with pepto diarrhea. - [spokesman] if you've tried colleg(group cheering)shed, snhu lets you transfer up to 90 credits toward you bachelor's degree.

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you know me, i always say i have the smartest audience in television i love to hear from you. let's get to some of your tweets first up at cia 1857 tweets i am

in a little bit of ady dilemma i know i shoud have more but i don't want to sell at the bottom this is really important do not sell until we get some lift i know that a lot of people feel we'll never be lift. there always is. and then the second day, the second day you sell at the opening. next up, a tweet from todd, hey at jim cramer, #jim cramer #mad money. >> hey, i'm cramer, welcome to mad money. welcome to cramerica some people are trying to make some friends, i'm just trying to make some money. >> next up, jim cramer an audio book that's gotten lots of use i get something more out of get rich carefully

thank you so much. i cannot believe how hard the audio books are to read. four st weekends and a lot of knights. i'm glad that you're getting something out of it. next up, a tweet, rule number one bulls make money, bears make money, pigs get slaughtered applies to my s&p 500 index fund it's been a long run if this is bedrock money for retirement, you do not touch it. if it's money to put away for kids you do not touch it for school, do not touch it. i'm talking about mad money that should be traded and taking some off the table. not the basic index fund that's to be run for as long as you can stand it stick with cramer. an ok place. what? just as soon as my audit's over, this gets my undivided attention. you take a lot of trips to the caymans, phil? pretty great, right? oh phil's legally dead. fell off a boat. going by denis now. celery. long story.

what do we got here. oh. not going to want to see this. i don't think this is going to work. just ok is not ok. at&t has america's best network, now with our best plans, at our best prices, starting at $35 a line for 4 lines. new from at&t actions speak louder than words. she was a school teacher. my dad joined the navy and helped prosecute the nazis in nuremberg. their values are why i walked away from my business, took the giving pledge to give my money to good causes,

and why i spent the last ten years fighting corporate insiders who put profits over people. i'm tom steyer, and i approve this message. because, right now, america needs more than words. we need action. >> i like to say there's always a bull market somewhere. i promise to try to find it for you right here on mad money. i'm jim cramer see you next time. re festival --

this glossy promotional video pitches it as the greatest music festival ever. burrough: you know, beautiful models frolicking in the water in the bahamas -- "fyre festival." clarke: it was supposed to be like the most insane festival the world has ever seen. narrator: but fyre fest is a complete disaster that quickly goes viral. -welcome to fyre festival. -[ screams ] -what's happening? -fyre festival is canceled. this is just [bleep] crazy. narrator: and the mastermind behind it all -- 25-year-old billy mcfarland. billy had a lot of obvious talents, but the greatest one was selling himself.