if it comes in early in january you buy it play for the end. >> mr. adami. >> wishing lindia happy birthday happy new year. >> rates go lower tlt. >> thank you for letting me be here for tomorrow. back on thursday at 5:00 p.m happy new year >> my mission is simple, to make you money. i'm here to level the playing field for all investors. there is 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" and cramerica. people want to make friends, i'm just trying to save you money. my job is not just to entertain but to educate and but teach us so call me or tweet me at jim cramer every night i come out here for two big reasons. first is obviously, i like the attention. but the second and more important reason is that i want to help you build and preserve

your wealth. we live in a world where it is difficult to become rich if you weren't born that way. and love it or hate it, i believe that the stock market is the best ladder we have in this country for social mobility. there are millions upon millions of people in the country but there aren't that many jobs that pay you a salary fat enough to actually make you rich even if you're a total cheapskate and if you want to become wealthy in this country unless you're born with a silver spoon in your mouth that means planning your financial strategy for a lifetime even if you don't have a super high paying job, as long as you could save a chunk and invest widely, you could become if not fifthy rich, then at least financially independent. meaning you don't need to worry about job security or where your next paycheck is coming from and retire easily without the need to rely on social security which

might not be around when some of the younger viewers hit retirement age that is why tonight, tonight i want to help you figure out the best way to manage your money in order to help achieve real financial independence but in order to do that, we need to talk about the concept of generational investing because the kind of strategies that make sense when you are young and in your 20s are very different from the sort of things you should be doing when you are middle age or a senior citizen we don't talk enough about that on "mad money" but tonight is different. no matter how old you are, the fact that you'll never get a better opportunity to make your money than by investing in the stock market even when we're in a bear market, when the action is treacherous and volatile and it feels like stocks go down every single day when you take a long-term view it is easy to see the stock market is the most

effective meth add of wealth creation and it might crash like it does upon occasion. but if you take the long view, the very long view, stocks tend -- excuse me, stocks tend to go higher and i don't say that as a pollyana when i got started in the business in the 1980s, the dow jones industrial average was trading in the 800s. and despite multiple bear markets between then and now the dow stands at what you might call well above that market, right. that represents some pretty fantastic amount of wealth creation and that is why i'm so adamant no matter how old or wealthy you are, you should really have some money socked away in this, in the the stock market and for those of you who are concerned the market is rigged and dangerous and to unreliable or unsafe of a place to trust your savings could i give you

some historical perspective. if you go back to 1928, before the great stock market crash that preceded the great depression through the end of 2014 the average annual return for the s&p 500 is about 10% show me an asset class with a better average return. you can't do it. stocks aren't just the best game in town. they're only game in town if your goal is to grow your wealth if you want to get rich quick rather than get rich carefully, that 10% average return for the s&p 500, it may not seem like such an impressive number and you're saying thanks for nothing. wait a second. you're wrong you're just wrong. forget the fact that is more than double that you could expect from a 30-year treasury or positive and they earn next to nothing let's examine the 10% figure in absolute terms when you take a long-term view which is what we're doing tonight, meaning planning for

your lifetime, wracking up so% from an s&p 500 index fund which you know i prefer seems pretty darn impressive. the market will have the up years and down years but overall long enough time frame that 10% figure including dividends has held steady. but to understand the value of an asset class with 10% return in the average year view this through the lens of what is known as compound interest sometimes i'll talk about this as the magic of compounding. think of it like this. if you invest $100 in the s&p 500 and it gains 10% in the first year, then you've got $110 after another year of 10% gains, you have $121 and then third year $130 and the gains get larger because each year you're making additional money off the previous year's profits and with a 10% average return you'll double your money in roughly seven years. for those of you really young,

right out of college, waiting seven years, it seems like an eternity and listen, i've got more risky ways of growing your capital faster if you stay tuned however, the truth is that as you get older an investigate that could consistently take your money up in seven years time and double it, it just becomes incredible that is the magical compound works best the younger you are because you have more time for the money to grow but sadly the young people are least lick -- least likely to be impressed and that is why bernard shaw said youth is wasted on the young he wasn't a -- writer though so let me do my best to make the numbers sound more impressive. i'll walk you through it suppose you are 22-year-olds old and you are expecting the work force and have more than 40 years and invest $10,000 in an s&p right now and the next 40

years aren't too different from the last 40 years. in that case, if the average return for the s&p 500 is holding steady at 10%, in four decades your $10,000 investment will turn out to be worth more than -- $450,000 that is enough to send multiple children through college and grad school and buy a house and pay for a huge chunk of a ritzy retirement and that monster multi-year gain didn't require any kind of stock picking. it doesn't require you to trade or time the market or even do any sort of research into individual companies. which i know is hard for most of you. you just need to invest your money in a low cost s&p 500 fund or etf and then you wait granted you're waiting 40 years but $450,000 when you are

approaching the age to retire seems more valuable than the 10,000 investment when youwere young and had the life ahead of you to make the money the regular way. so please, i'm begging you, hi of it like this -- a little mon saved and in the stock market is the easiest way possible when you are young to turn into a massive fortune when you are old. and i have all sorts of additional costs and responsibilities and all you have to do, if you initially save this money, is let it sit on the side lines. in a 401(k) or ira so you don't have to pay capital gains. the same logic applies if you are 30 or 40 or even 50. but you get more bang for your buck if you start younger. which brings me to the bottom line even if you don't have time to do homework, the stock market is still the best tool out there for growing your wealth and thanks to the magic of compounding, the earlier in your life you start investing in the market, the bigger your

long-term capital gains can be and of course, it is not just -- not just capital gains but also dividends. everything is reinvested let's go to brenton in new mexico >> joik jim cramer, a big booyah frommen chantment. mutual fund and index funds claim minimizing single stock risk. >> right. >> but inherently though isn't it fair to say that mutual and index funds have other risks that you would avoid with a single stock portfolio >> absolutely. and i think that is why i suggest there be two portfolios. there should be the capital preside -- capital appreciation aside for retirement and in a diversified fund and prefer it to be an

index fund and the rest should be "mad money. and we pick individual stocks, that is why we call the show "mad money." i don't want the bulk of your portfolio in individual stocks there is too much risk but pick stocks and i know you want to do it or you won't watch the show brian in oklahoma. >> thanks for having me. first time investor. how do you value a company's versus another, measure they're value. >> well we spent a lot of time in get rich care flay talking about that and you try to measure the future earning stream and if you could measure the future earning stream you figure out what you pay for that stream now and what really matters if you take a long-term view you could feel what that stock could give you for dividends and capital gains. dividends tend to be for -- for preservations and then the capital gains is for the appreciation stream. i want you to have a little bit of both.

but you have to be thinking about what a company can earn in the future that is what dictates stock prices this show is about helping you build and preserve your wealth and the stock market is the best tool to do that. a lot more "mad money" ahead including the four-letter word of the investing world what it is and why the conventional wisdom about it is all wrong. plus i'm not pulling any punches here what you absolutely must not do in your retirement account and i'm unveiling the rules you need to navigate in a bear market so stay with with cramer >> announcer: don't miss a second of "mad money." follow at jim cramer on twitter. have a question, tweet at #madtweets and send an email to cnbc.com or give us a call at 800-743-cnbc miss something head to madmoney.cnbc.com.

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what are you doing back there, junior? since we're obviously lost, i'm rescheduling my xfinity customer service appointment. ah, relax. i got this. which gps are you using anyway? a little something called instinct. been using it for years. yeah, that's what i'm afraid of.

he knows exactly where we're going. my whole body is a compass. oh boy... the my account app makes today's xfinity customer service simple, easy, awesome. not my thing. tonight we're talking generational investing meaning how to handle your finances depending on whether your old or young or somewhere in between. as much as many of us might not want to admit it, the rules in this game could be totally different depending on what age you are. nobody would suggest that a retiree put all of his or her money into high risk speculative stocks that could either have enormous upside potential or go all the way to zero and absolutely wreck your portfolio. but just because some of this may sound straightforward may not necessarily mean it is

obvious or standard which is why i'm taking the time to go over the important difference depending on where you are in your life cycle. now i tell you you need to have two discrete policies, your retirement portfolio which is more conservative and invested through a 401(k) or ira and then your mad money portfolio hence where the name comes from. once you've topped out your retirement fund, no matter how old you are retirement objects must come first. i love to play with the discretionary "mad money" side of things but a bet on your retirement is a bet on your longevity and you shouldn't have to work your fingers to the bone and that means planning for retirement from the moment you get your first paycheck. regular viewers, no matter who you are the first $10,000 you invest in the market should go straight into a low cost index fund or etf that mirrors the s&p

500. index funds are a tab way to get exposure to gains without putting in the time and effort necessary that we do around here picking individual stocks. and hey, if you don't have the time or inclination to pick stocks then all of the stock market exposure could come via the index fund that mirrors the s&p 500. i'm fine with that but like i mentioned, it is important to get yourself some exposure to the market because no other asset class could grow your wealth the way equities do. once you save more than $10,000 that means you have enough money to start a diversified portfolio of five stocks anything less than five stocks and five sectors, you aren't diversified and you take that money and invest in individual companies for your retirement portfolio. once you save enough money for retirement and maxed out on the benefits of the ira and 401(k) that we start talking about the discretionary portfolio where you could afford to take more risk i really want to make this point

because feel that i want you to just be in individual stocks that is just wrong index funds and then individual stocks now when you're younger your retirement and discretionary portfolio might not look that different. younger investors could take risks that we old guys simply can't. that is true for a host of reasons. when you are in your 20s or 30ss if you invest some something risky and it crushes your portfolio, you have time to make the money back you've lost your whole working life and you have the rest -- years and years of paychecks however, if you're pushing or approaching retirement and you lose a fortune in the stock market, that is a problem and you'll have very little time to fix it which brings me to the first rule of generational investing not only can younger people afford to take risks with money, that older folks can't, but for those of you in the younger demographic it is imperative that you take those risks. now you shouldn't go crazy and

speculate with your savings. that retirement portfolio is off limits but you should devote some part of the discretionary mad money portfolio and risk and i believe in this. i'm talking about smaller less well-known companies with massive upside potential with downside risk if things go wrong. remember it is for the younger cohort or the development stage biotech stocks and could fly through the roof with a positive approval or a drug years away from hitting the market but the smaller bioteches will get slammed if there is negative news and thestocks are difficult to own in negative market because they don't have dividend or earnings protection but we're talking about long-term investing, looking for good opportunities that could work regardless of whether we're in a bull or bear market and there are plenty of companies that have nothing to do with the drug business. why do i insist that younger investors speculate, take risk

that might scare older people? because the gains here could be absolutely stunning. and it is down right foolish to pass up the opportunity to get the winnersine if it means you hit some losers along the way. that means taking risk let me give you an example that sheds light on the situation when "mad money" came on the air back in 2005 or furs ceo interview was from len schleifer from rejenneron, traching around $5 a share and it was a biotech kicking around for 17 years. without ever developing anything noteworthy that could move the needle since then, this company has become a powerhouse. with the stock taking off into the stratosphere based on a drug called ilea for macular degeneration formula and fast

forward ten years to the summer of 2015 and the stock had traded up to $592 before getting slammed by market wide selloff but for the sake of using round numbers in this example, let's just call it $500. ten years ago. could have bought it it and speculation $5 what would happen with that $500 at $5? how about this a gain of roughly 9,900% not a double or a triple or a quadruple. no it is a ten baggerment but you never could have gotten in on that gain if you haven't taken a little risk in 2005 and bought a company with no profit and promises from the ceo that it would work out. it worked out in a major way but small cap bioteches have done nothing or lost enormous sums over a short period of time or long period. some have been kicking around. you won't identify the winners

in this kind of space but that is okay as long as you cast a wide net speculate using a basket if you take small positions in the ten bioteches, none of them will go to zero as long as the tenth is rejenneron you still would have made a monster game this is only one small diverse of the portfolio but it absolutely belongs there because the risk/reward of trying to find the speculative winners makes sense when you are young for older investors speculation is much more risky game and i only recommend playing it with excess cash that you absolutely can afford to lose here is the the bottom line. remember to speculate while you're still young enough to be able to take the hit if something goes wrong as long as you're disciplined and it only makes a small part of the portfolio, not your retirement portfolio, then it is absolutely worth hunting for the next regeneron without hesitation much more ahead. i have the answer to stocks or

bonds. -- is wrong and i'm about to rewrite the script and the game plan to follow when the bear market breaks and it is the most important piece of advice about financial health i could ever give you. many of will you have to take action tomorrow. don't miss this. stick with cramer.

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it's time to address a major issue that i have to admit i don't spend enough time discussing here on "mad money. i'm talking about stocks versus bonds. there is a good reason why you don't hear me recommend that you invest in bonds and not just because the show is about stocks since the great recession interest rates have been held down and bond yields like from owning u.s. treasuries have been paltry versus what you could get from safety dividend-paying stoc stocks, in general when the stock market is getting absolute pounded, bonds haven't represented very good value versus equity. that is why i've so often castigated you about the idea that excessive prudence could be the most reckless strategy of all. because if you invest too much in safe risk-free u.s. treasury

bonds you've been ensuring that i'll get a very low return on your investment for many years to come. all in all if you want to grow your capital and after all that is what investing is sunday to be about, then like i said before, stocks are still really the only game in town even after, what can i say, so many years. however, i don't want to make it sound like i'm poo-pooing bonds altogether there is a place for bonds in your portfolio it is an essential place, especially as you get older. here is the crux of the issue. even though i believe stocks are the best way to grow capital over the long-term and even in moments when u.s. treasury yields are low levels at the end of the day stock and bond investing are two entirely different thing. stocks you use for appreciation, turn your money into more money but bonds are all about capital preservation and protect your money and give you a steady

albeit small return that is still big enough to stop inflation for the most part. you invest in stocks so you could risk your wealth to generate additional wealth and what you can't afford to lose. there it is. which brings me to the generational investing aspect of the question depending on how old you are, there is a huge difference on how to approach putting money into bonds when you are young, it is all about taking risk to get better returns. i've explained how people in the 20ss and 30s could get away with that attitude because you have the rest of the working lifetime to make back any potential losses but as you get older and you have more and more wealth, you simply can't afford to lose it especially in your retirement accounts now bonds are are a staple of saving because u.s. treasury is the closest thing to a risk--free investment but you need to own more bonds earlier in your lifetime than i think is necessary. you never get rich from owning treasuries even if you invest in 30-year

treasury, the highest yield, the lower terms don't produce much in the way of capital appreciation let's say for the sake of the example, 30 year are yielding 3.5%, a low level but higher than the 2.5% range we saw in the first nine months of 2015. with that 3.5% yield as long as you reinvest your coupon payment back you might double your money in to years. remember the average historical return for benchmark is 10% annually which will let you double your money in seven years. so if you're under the age of 35 and you own a bunch of bonds, with the idea that they'll slowly make you money, i think you're being way too cautious. i know it puts me out there but you know what, i've been around. that is how i feel even in your 401(k) and ira, be very heavily weighted toward stocks while young particularly because the tax advantaged retirement vehicle as

lou you to avoid paying capital gains and gains to compound tax-free year after year and i've told you how great compounding is but as you get older owning treasury becomes essential because unlike the stock market where you could lose money in the blink of an eye, bonds are safe once you've used the stock market to make yourself financially financially independent, you want to know your investment won't vanish overnight and you put that in a cheap bond fund that mirrors the yield from long-term treasury so let's get down to brass tax precisely how much should you keep in bonds versus stocks. that depends on how old you are. i'll give you my rule of thumb i don't think your retirement fund should have any bond exposure whatsoever until you turn 30. if you own bonds at age of 25, you're wasting your youth. it is better to put your capital to work in the stock market where it could grow. in your 30s, i'm going to let you keep 10% of your retirement

fund in bond or 20% if you are on the conservative side excuse me. once you are in your 40s, you could go up to 20% to 30% bonds. in your 50s, i say 30% to 40% and your 60s approaching retirement, take it up to 40% or 50%. that is right. even if you retired, i still think you should keep a substantial chunk of your portfolio in the stock market. post retirement my recommendation is that you increase your bond exposure to 60 to 70% because once you stop working you really can't afford to take too many losses with your investments especially since you're going to need to start spending the money in you're retirement accounts. excuse me. but that said, i still think keeping a third of your money in stocks makes sense even for a retiree because you're living off your investments for the rest of your life. so some part of the portfolio should always be trying to create more wealth in case you live longer than you expect and need more money to support

yourself in other words, going all in on bonds, once you've retired is a bet against your own longevity who the heck wants to take that kind of bet. here is the bottom line. for younger investors putting money in bonds is a fool's game but as you get older you should increase your retirement funds bond exposure to 40% to 50% is in u.s. treasuries by the time you're in your 60s because that will be protected against the volatility of the stock market but even if you retire, keep owning some stocks so that some piece of your capital could continue to appreciate over the long-term. best case, you live a very long time and that extra money, it comes in handy let's take some questions. nasir in pennsylvania. >> caller: booyah, jim. >> how are you >> caller: i'm good. big fan of the show. thank you for taking me call and i love your book "get rich carefully". >> thank you. >> caller: i'm looking for advice on how to determine a

price for a stock if i'm looking to start a core position given how important cost base averaging is. >> i think it is a great question and the reason why it is a great question is that a lot of people feel like they want to draw a line in the sand they want to make what i call a statement buy or in a position where they got rid of it, they bought it and then put it away that is why i say take into account human frailty. the most i ever liked to buy at one point is half of my position i prefer to buy a quarter. if the stock goes higher, well what a terrible high quality problem. if it goes lower, you have room to buy and i like to buy in stages and in all of my books i talk about stage buying don't be overconfident do it in stages. brian in new york. >> caller: hey, jim, how are you. >> i'm fine. how are you doing? >> caller: i have a 401(k) from a reefus employer and i'm trying to decide whether to put it an an annuity managed by a

insurance company or ira. >> i want to you run it yourself you watch the show you could do it yourself the annuities have fees. i'm not against anything that makes it so people could build wealth but my experience has been that a lot of annuities have fees that eat things up maybe there is some that don't but i believe in self-directed investing when it comes to that and if you have to put it in an index fund but i do like to take control of my investments and ira lets you do that investing in stocks and bonds are two very different things. as you get older you add exposure to bonds but young investors you don't belong in bonds. still much more "mad money" ahead including the pay book for when a bear market takes a bite of your money. plus i'm not kidding around about this, if you want to ensure a strong retirement you want to listen to my advice and take action tomorrow morning don't miss it. and i'm answering the questions you've been sending me on twitter. so why don't you stay with cramer

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ton rather than focusing on day-to-day vicissitudes of the stok, -- the stock market, take a much longer time to discuss on "mad money" and when i say longer i'm talking about taking a 20, 30, 40, or 50 hiyear view. and there is no such thing that you could buy and hold for the next decade or two it doesn't work that way i wish it were that easy and that is my motto, buy and

homework not buy and hold. check up on it on a regular basis and make sure nothing is going wrong with the story but because you can't pick a few stocks and ignore them, that doesn't mean you couldn't take a long-term view but zoom out a bit. and when you examine stocks over a multi-decade time horizon, one thing is readily apparent, if you know what you are doing, a bear market can simply be a different kind of opportunity. that is right. when stocks are are getting slammed, when they're getting hit everywhere you look, when it seems like the losses will be endless, when the shares of individual companies can't even amount significant rallies in the face of positive news, definition of a bear market frankly, you have to recognize that you could be getting a terrific opportunity to pick up some high quality stocks for the long run into the weakness i'm not giving you a license to buy strongs indiscriminately but when you are faced with a bear market, meaning when the average are down more than 10%,

use that as the parlance on the show from the highs and they seem like they could go even lower, that probably makes more sense to start buying those stocks rather than selling them. as long as you're willing to take some short-term pain for long-term gain whenever you buy during a bear market, you need to be careful never buy a position all at once that is pure arrogance and you're looking like a moron and ball small stocks incrementally on the way down and humility and in a bear market use wider scales meaning you need to have the stock go down substantially before you buy more. over the long-term you've taken advantage of a terrific opportunity that most people were too worried to pounce on. thinking long-term something at the beginning of the show but we are way past that look at the chart of the s&p 500 over the 10 years starting in the fall of 2005

look at hideous declines during 2008 and 2009. if you use that weakness to gradually build a position in a cheap s&p 500 mutual fund then in a couple of years you made a killing. or that nasty bear of 2011 we snapped back even more rapidly. this is why warren buffett seems so sang win when the market is getting crushed. he has a long time arise and enough money to take virtually never level of short-term pain to get his hands on long-term gains. don't get me wrong if you have a shorter time, if you are a hedge fund manager who needs to be up for the year or for the day for all that matters because investors will flee your business, you could not approach to abear market. you'll lose enough money in a short enough period of time that the fund will likely go under. go read confessions of a street act when things got tough for me but we were able to pull out

and you don't need to make money every day or month or year you need a long-term strategy to let you rake in massive multi-year gains over the rest of your life totime so you coul send your kids to college and you don't need so concerns with short-term performance and you shouldn't hold on to loser stocks hoping they will turn around. the ugliest markets that send everything down, the good with the bad, they will always create opportunities for shart investors as long as you're patient enough to take advantage them slowly because if you buy way too close to the top and the other caveat if you are not playing with an index fund then be careful about what stocks you pick during the bear market and do your homework and make sure they are doing well and good balance sheets or the companies doing okay but could do betner a stronger environment during a bear market you must not buy the stocks in the blast

radius of whatever is causing the decline. think of the banks in 2008 and 2009 and oil and natural gas resources that started going down in the fall of 2014 you don't want to own the companies that are causing the weakness instead you should search for collateral damage stocks going down, everything taken lower by the s&p 500 futures and the ets that crush entire sectors and if you own anything in the blast zone swap into something safer and if you want to take advantage of a climb to do buying, you need to have some cash on the sidelines in order to make your move. otherwise you'll just be shuffling money between different stocks all of which are going lower. that is why i'm so adamant that you have some cash in your portfolio and the better the market is doing, the bigger your cash position should be. that is right, the better the bigger when things go wrong, you'll be able to use the weakness to buy the stocks of the companies you like at bargain basement prices.

so here is the bottom line when you have a long-term time horizon you have to remember that big bear market declines could be excellent buying opportunities as we've seen since we started the show. as long as you only purchase high quality merchandise in small increments on the way down stick with cramer. feeling sluggish or weighed down

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all night i've been telling you about the best way to approach investing in a long life perspective how to man ang your money when you are young and middle-aged and you haven't heard 60 is the new 50 and once you retire but there is another aspect of generational investing and that

is the need to get your kids interested in managing their own money and learning about the stock market in particular i say this to parents with children of all ages while i love the public school system, you simply cannot rely on the public schools or even the ritzy private schools to teach your kids about money. they could do a bangup job with physics, calculus or a language. however if you want your children fluent in the language of finance, you have to do it yourself i get personal -- is looked too simple your high school health class will help kids how to put a bond om on a banana but nobody will explain why it is dangerous to maintain a balance on your credit card bills and you can't wait until after your kids go to college to teach them because at most institutions of higher

education students get bombarded with credit card offers that could seem irresistible. i took down five of them throw in thousands of dollars of credit card debt on top of student loans and they could be in the hole for decades and that means you the parents need to bail them out. we don't want that yet raising financially responsible children isn't just about being good parents it is not about being hit up for cash every month even when your kids are well into the 30s. that is if you want your children to learn about money and what parent doesn't want financially responsible children then you need to do it yourself. that is means you need to have long boring conversations about debt like anyone could wrack up on a credit card and save money with the power of compound interest for generating wealth but the best way to make this go down is with a spoon full of stock picking sugar. in other words starting at a

fairly early age i recommend giving your kids gifts of stock in high quality companies that resonate with young people my class example is disney give them a couple of shares a year for the holidays. starting when they are old enough to appreciate the big movie franchise, "frozen", "star wars" and so many blockbusters over many years in the future, not to mention the terrific theme park business and properties, by the time your kids are teenagers their disney holdings will show a nice gain there is no better way of investing than having your children make money in the stock market themselves and follow it along. and look, as much as i like disney, you don't have to go with mickey mouse. it could be any high quality company that will resonate with somebody still in elementary school here is the bottom line. the point of getting your kids interested in stocks early is simply you need to teach them a better way to think about money. rather than viewing cash as something to be spent. you want your children to learn

that money is something that could be saved and invested, to create still more money at the earliest possible age. and if you don't want to do this for your children, do it for yourself because kids who can manage their own finances are kids who won't be begging you for mullah even after you've gone into retirement stick with cramer. >> cramer has burned the midnight oil and ready to run the gaunt let. all week cramer sits down with some of the market's most influential suite players. join "mad money" more must-see interviews you can't afford to miss i love the new myww program, because it's tailored to you! take the personal assessment and get matched with a proven weight loss plan. find out which customized plan can make losing weight easier for you! myww. join for free + lose 10 lbs. on us.

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okay, cramerica it is time to check out the twitter sphere and look at the tweets at jim cramer let's catch up with viewers at home and see what is trending in portfolios first up we have @ frig 93 who said jim cramer you talk in your book about research, what are a few pieces of information to look for when stock picking. the first thing is i want you to know the product know what it does and like it. the reason for it is because a lot of times stocks go down after you buy them and if you like the product you'll be more inclined not to panic and get

out. then after that, you could read and get rich carefully and do comparisons and tell you how to raid a stock but you could do it on a number basis and just figure out where it should stand versus others but you've got to like the company first or i promise you in the first big selloff, you'll become a seller, not a buyer i don't want that. okay the next question is from patrick. it is suttera at pat suttera jim forecast retirement is better to dollar cost funds or wait for a downturn/mad tweets here is how i do it. i try to do it one 12th a month and each month but if there is a big break in the stock market i accelerate some that i would do later in the year and put them to work in that break. even up to a third so i like to take advantage of the declines and accelerate what

i put in and i've done that for years and years and it is worked for me. otherwise divide by 1-12 and next up is larry bloomin my wife said what would they do without cramer my wife said the same thing. all right. now, look, i'm a teacher i got some books i've tried to come out here every night but it is important for people to know us, what you need to do -- what would you do without yourself this is about empowering you it is not about giving you ideas. it is about how to look at them. a lot of people look at the show who haven't watched it over the evolution and he tells you to trade in and out of this or that i hope that you know that it is the opposite longer term investing is the way to make money. index funds and then mad money and doing homework and trying to figure out how to do it your self-. and last is jeffrey hope would you mind sharing your sunday stock routine please. i have -- i get this thing from

the standard&poors and pushed via email and it is -- it is hundreds and hundreds of charts. i go over each one and i do -- i have a file that says good, bad, question mark, try to figure out why that went up and then story idea for show. and i write down each one and where they are and where they fit. and then when i'm done i tend to do a piece for real money, a long piece, that is the paid side of the street where i look at which trends i see and then for the rest of the week i send my staff, which stocks i don't understand and why and some theories about why we should do certain pieces and it takes up almost all sunday except tor when the eagles are playing. stick with cramer.

i like to say there is always a bull market somewhere i promise to find it for you right here on "mad money." i'm jim cramer and i'll see you next time.

>> happy new year from cnbc. >> 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." ♪ and i'm cameron cruse. and we're the co-founders of r. riveter. cameron and i are both military spouses. we met when we were in georgia while our husbands were stationed with the army. being a military spouse can be difficult. you move on average every 2.9 years, which makes it very difficult to find a job or build a résumé to be proud of. -hey, guys. -hey. -good morning. a big purpose behind our company is empowering women. and actually we named our company after rosie the riveter.