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tv   Mad Money  NBC  January 2, 2016 3:05am-4:05am CST

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ideas to explain there are classes of stocks within the stock market that are not just bisector. in other words, i offer tonight a new diversifyication that guides you to what stocks i want you to have if you manage your money yourself like so many are, you wouldn't be tuning in. first, though, let's go over your mind set. if you're going to manage your own money, you have to recognize the value of humility. please, repeat after me. sometimes i'm going to be wrong. come on, say it. sometimes i'm going to be surprised, and not in a positive way. one more, sometimes my stock takes a workout despite my discipline. i want people to understand humility is not natch rafural to everyone, but staying humble is important. why? other than greed, it costs more money than arrogance. if you own stocks, own the fact you'll be wrong, perhaps often. as the passing years taught you
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with things you never imagined coming or thought possible. that's where i'm coming from when i talk about this new diversification. diversifying among sectors is not enough anymore. you need to work harder than basic diversification as in industrial, utility, financial, drug, or techie. this recognizes to be new age, we are at one with the world. stocks around the globe trade together these days in good and bad times, impacts stocks in different ways. plus, electronic traded funds, etfs, link together in a way i never imagined in "mad money" when we started. you need ones that report errors and pitfalls of political and geopolitical events to our stores because these matter much more than they used to. again, i've had to change to adjust this. i never used to care about the machinations of washington. it really impacted stocks, they were just a side show, but in
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that directly intervened in the markets and with the worldwide links, it's not just our politicians and bureaucrats we care about. it's showing. who would have thought we needed to know what the european central bankfuls? what it was going to do. let alone the person's name who runs it. i didn't used to know that stuff. who would have thought we have to gauge the strength and weakness of the chinese economy on a week to week basis or even daily. it's all strength for three decades, now worry about it falling? what about a cold war back on the agenda? or there would be war always in the middle east? we have to protect ourselves against new intrusions we did not care about when we started the show. now it's a homage. we will explore five areas tonight that you need covered for maximum protection and upside. you need goals. it's a complete dog. i've been there. we'll talk about that too. that's all right.
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functions as insurance if the world really goes bonkers and inflation comes back roaring as smart hedge funds say it will. you need a dividend, a growth stock, speculative, and something from a healthy geography. cover all five basis, and you have a portfolio winning in any market. i'll explain all five areas, teach you how to analyze stocks in each one to fill every position with the best possible ones. always expect the unexpected. that means keeping your portfolio diversified with 20% of the holdings in any one sector and following new diverse diversifyication diversification. goal, growth. stake with cramer and i'll tell you how to pick the best place in each crucial category. we start the call with shawn. >> caller: thanks for having me on.
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investors myself. i'm a finance major at the florida state university, and i wanted your opinion on investments. >> sure. well, first of all, go noles. first jopb out of state was covering the football programs, and i love tallahassee. the people in their twentyin their 20s, take risk. you need speculative stocks, high growth stocks, and you need stocks that are growth stocks. that would be the mix of the diversity kags back in my 20s. by the way, many my 20s, i spent money on beat your head in night, but beat the clock. drinks were a nickel. i should have put money in oil stocks. hellen in illinois, please. >> caller: hi, this is hellen, and i'm a retired lady, and i wanted to know when you make
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better to take to out and put it somewhere else, or lose it? >> great question. my mother, when i used to gamble with her, listen, take the winnings off the table and buy a sweater. take some of the winnings off the table if you have big moves, not describes how big a move, but the goal in life, in the financial life, play with the house's money. that should be your absolute goal at a minimum, you can do it. diversification, it's the spice of life. you need a goal with a high yield, growth stock, speck stock, and geographically safe stock. we'll find the best of each on tonight's special show. stay with cramer. don't miss a second of "mad money," follow @jimcramer on twitter. have a question? tweet cramer at #madcramer, or
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happen cnbc.
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head to madmoney .cnbc.com. tonight, i'm teaching you a novel, a novel way to fill those five slots in your portfolio i
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the five stocks that now represent what i call the new diversification, not just by sector, but style and strategy. if executed correctly, you'll always own something that works and holds your interest, keeping you in the game even when it feels to excruciating that you don't want to continue playing. well, at the same time, making sure you have some positions that go much higher when times are good. what's the most important category? i have no question about this. in a world where even when central bankers raise rates from such low rates, you can't get bonds to live on. you need a stook that gives you a good yield. by the way, it's not a funny way to approach things. own a stock, at least one, possibly more, with a big, high yielding dividend, but unlike diversifying by sector, owning two or three high yielders, but no more than that, it's a good thing. they are not the same. i wouldn't go in on five high
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vulnerable if the return on long term treasury bonds spiked in a big way. you'd be hurt. on "mad money" we suspect a bond market and power holds to influence stocks. if not, we are imprudent, and when they rise, they rise fast and you're smashed no matter the industry they are in. we see this time and again. it's utility like verizon can trade with a consumer packaged good company like proctor and high yielding oil like conoco phillips all because they have high dividends. it's important to consider after a period of time of interest rates, volatile ones could royal all three stocks at the same time. we have to be concerned that the tax rate on dividends, well, that it could go away, and, therefore, making the most competitive bonds give fixed income equivalents a real
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2013, but if you own one stock with a large yield and one or two of other names in the portfolio, that's not bad. i know dividend paying stocks may not be what most people consider sexy, but you know what? dividends make you money for heaven's sake, and, to me, well, to me, that's the definition of sex appeal. i have a work-social life, so my perspective is skewed, but high yielders and reinvesting back into the stocks is the greatest, most reliable ways to make money out there, plain and simple, allowing investments to compound, that's the keyword, compound over time. in other words, over time money pays dividends giving compounding returns, provided you keep reinvesting. there's a huge misconception out there. high yields are only about safety or generating income in the retirement, but let's do a
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january 1926, 40% of the return from the s&p 500 has come from the reinvested dividends i talk about? 40%. look at the last decade, percentage is higher, that's how special they are to capital appreciation. wall street gibberish for growing your money. i know it. i run a charitable trust in a teaching tool, and we're asked to give dividends away at the end of the year, and i think the inability to compound them hurts me over time. hurts the fund. okay. i don't get the money. charity does. dividends are not a place to hide in the rough market. only you are a safe haven in difficult times. it's not just for retirees about capital preservation. it's first and foremost the smartest strategies out there for making money period. it's one of the safest. dividend stocks have a cushion. it's yield support. they hang in there when everything else is getting
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eventually getting to a level where it's too attractive to ignore. that cushion is the reason why i talk about accidental high yielders. ahys, whenever you can find them. these are stocks that yield north of 4%, not because of boosts, but because share prices fall so far so fast causing the yield to skyrocket. it happened in the financial crisis, and it happens in big industrial stocks happened by european woes, downturn, and, yes, di bill at a timed china, relatively speaking. as long as it's 4%, dividend is safe, the stocks stop the downturn and turn out to be fab fabulous fabulous. i love the stock of companies that recently raised dividends. as a hike is one of the clearest signal to management consent, but strength of the business.
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equally important, it's a company you are darn sure is not cutting the dividend soon. come on, you cut it if you raise it. that's too embarrassing. it costs the ceo his neck. dividend increases are serious business, not repealed. even better are the outfits put in dividend increases for 2013, and more consecutive years. that ability is why i everyone siz love for dividend aristocrats. johnson and johnson, procter & gamble, a long history of dividend raises, but other than high yields and dividend boosts, how do you analyze it? just like when you learn to drive, safety first. high yields are attractive, but a very high yield can be a signal that the dividend is unsustainable and will have to be cut. you'll see me throw the red flag around here, and that's, you
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put it this way, you need a rigorous safety inspection if the dividend is sound. maybe the company raises it tooings but if it seemed endangered, no. it's not worth it, people. you have to stay away. consider the cautionary tales of the bond arbitrage funds, monster yielders, 10-11% based on strategies that involve buying huge amount of bonds with borrowed money. when rates chuck variable yields were crushed. don't take the bait. there was nothing accidental about these high yielders. it was a red flag sending a signal the payout is reduced in a short period of time, one not -- it's not worth risking. don't risk holding that to capture a juicy dividend. that happened years ago, both with radio shack and the supermarket changes in supervalues. huge dividends.
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but not until it cut dividends despite the contrary by management. given i'm bias what seems to be too good to be true high yielders wharks do you look for if the dividend is secure? first, above and beyond everything else, look at the earnings per share, the eps. my rule of thumb is that if a company's earnings are greater than twice the payout, we know it sustains dividends, even in shrink. in this case, you're home free. dividend is secure. if not, go to step two, look at the cash flow. it's important when dealing with companies with a lot of machinery or heavy capital equipment investinvestments, reporting high depreciation. think about high yielding play. verizon, at&t. communication stocks do not come cheaply. they can't afford yield. wait a second, the costs are not out of a company's cash, but they skew earnings lower, which
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better idea about the health of the dividend. i know people ask how i can recommend the stocks. reckless when earnings barely cover dividends, but it's because of the cash flow of the codes that i like this. if i can't understand the concept, please get back to even, okay? i actually go over the drills how to find out what a company's cash flow is. maybe you stick to earnings per share if you don't understand. look at the balance sheet to ensure there's not debts coming due, that the 2018-19 bond is too close. if the money can't raise it with a bank or the public, it may necessitate a dividend cut. last, but not least, collect the dividend. forget the jar begin like the record date, but on "mad money," we care about one date. it's the must own date, the last day you have to buy a stock in order to claim the next dividend payout. it's before the x date, and
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bottom line, if you want to embrace new diversification on top of the old sector kind we still preach, if you are prepared for every market out there, own at least one high yielding stock. dividends protect stocks, and it's a great way to make money. what's not to like? ralph in missouri. >> caller: hello, mr. cramer? >> yeah. >> caller: i thank you very much for all you do in your charitable trust. >> oh, you're kind. a couple mil given away, thank you. >> caller: i know that. i have a son, 35 years old, he has a roth ira, all with the s&p 500. my question is do you think it might be a good time to sell and go to a cash position, buy it back on a dip, or go to a fund with dividends, and if so, what category would you suggest? >> no, his age, stay in. i don't want him going in and out.
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month where the market takes off? peter lynch taught us that, the great fidelity manager, one on wall street describes, get in and get out like that when you're younger, you miss the window where all the growth happens that year. stay the course. dividends and conquer. if you want to be prepared for every market out there, make sure you own at least one high yielding stock, and, of course, stiek with cramer. cramer, you are super, you are awesome. >> thank you for inspiring me to get in the game. >> your show is the best. i'm so glad you're on tv. >> you transformed me. >> thank you, cramer. hey buddy, let's get these dayquil liquid gels and go. but these liquid gels are new. mucinex fast max. it's the same difference. these are multi-symptom. well so are these. this one is max strength and fights mucus. that one doesn't.
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the discipline of a new diversified portfolio always, always trumps your convictions about where stocks are headed. by never having all in one basket, you never suffer through the agony of what is crushed when the basket is run over by a truck. max, you need a good ole fashioned growth name, a secular growth stock. wall street secular has nothing to do with public versus parochial schools, and on wall
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secular growth, unlike cyclical smokestack growers, those who need a strong economy here and abroad to beat estimates critical to stocks going higher, they are not hostage to the health of the economy, and they keep on expanding even in a slow down. when you get your hands on a strong secular grower, that stock lifts higher and higher. jackie wilson, going on the new high after new high for as long as the growth lasts. think about stocks, like, oh, facebook. the high growth organic and natural food stocks we discuss on the show, or biotech names like biogen, the four horsemen. the companies growing like drug companies of old when big pharma was synonymous with growth. how do you analyze? judge? how do you know what grows well? when we buy a stock, we pay for a company's future earnings per share. we have to learn the basic
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all investing. the way we arrive at the real cost of the stock, not just the dollar cost. we understand this because we have to compare stocks on apples to apples basis, not just texaco worth $90 other coca-cola is worth $40. apple's not worth less after a split, is it? let's go over what a stock price really means. here's the simple algebra. the share price, the p, the pe ratio, shorthand for valuing stocks, the p equals the e times what's known as the multiple or m. e times m equals p. solve for m, what we're going to pay for the earnings stream. what's the multiple we're going to pay? the price earnings multiple is the key telling us what investors fork over for a company's future earnings, and the most important determining factor is the vital ingredient
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of the valuation special sauce is the company's growth rate, which is why i'm constantly talking about growth of sales and earnings. we'll pay a bigger price to earnings multiple for businesses with faster growth because they get larger and larger in years ahead. guests say, this stock is cheap. what they mean by that, typically, is it's cheaper than the average stock in the s&p 500, the benchmark for all stocks, and yet it grows faster than the average stock or somehow more special than the average stock because of a catalyst that's about to occur, so it's cheap versus the s&p. we use this pe ratio for what we do. when it comes to high octane secular grower that doesn't need the economy to be strong, it trades up to a multiple as high as twice the growth rate. the year on earnings growth rate before it's too expensive for
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pricing rate basically, so if the company's growing earnings per share at 20% clip, you know what? the guys pay as high as 40 times earnings. that's right. typically, a growth stock does not trade down to multiple of less than one time growth, but in that case, 20 times earnings, unless there's something wrong with the fundamentals we don't know about or find out about until later. maybe we're in a nasty market that's soured on growth for the moment, even secular growth. that happens because of the sudden spike in interest rate, making multiples shrink as their larger earnings in the future are less attractive relative to the increased yields people get from cash or treasuries. by the same token, it's more attractive, multiples expand. pay more for the m or in the spring, when so much supply hit the stock market in terms of new offerings and secondaries, particularly for growth stocks like bioteches and cloud stocks, big gobs of stocks sold at once
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that the buyers were overwhelmed and what happened is the cloud internet in stocks almost all faltered, even more important, when you want a high growth stock, you have to be sensitive to what directions earnings estimates are going and whether they increase at a faster or slower pace. the stocks can soar to new high after new high, but remain cheap as long as the analysts who cover them keep raising earnings per share estimate, and they have to do it quick. when the estimates have momentum, a stock like facebook doubles over the course of 12 months, we saw that, and price earnings multiple is lower than where it started because earnings estimate increased faster than the share prices and went higher. this momentum allows stock to resist the downward gravitational pull that's ugly in the economy. be very, very careful because you're playing with earnings momentum, so, therefore, you're playing with fire. for the truly high octane growth stocks out there, if the time comes where estimates come down
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have it tell you, it looks like what is at the bottom of this. it's like driving a fast car into a retaining wall. when one of the companies stumble, the stock falls faster than you can imagine, like chipotle losing a quarter of its value, at one appointment, 100 points a day. there was a disappointing quarter suggesting the company was vulnerable to economic weakness more than anyone thought. we thought it was a grower no matter what. you rode it out for years, you still had gains, and you made out like a bandit when the growth of the earnings returned and then some. after a growth name loses its mojo, be cautious because unlike chipotle, the pain of the last three years, as the stock goes through a painful process that we joke about of multiple strengths. i still like to refer to "seinfeld" because it's
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it takes years as momentum and growth seeking investors pay less and less for slower earnings growth until they are shaken out entirely, and the prior to earnings multiple sinks to levels where value oriented investors are interested, and bottom fish. that's been what the long ride down's been for online pharmaceuticals like merck. when you see depression beginning, don't hang on for the full ride down, but just sell, sell, sell. for a line in every market, you need a fast grower with lots of runway ahead of it for years to come. remember, when you deal with growth, terrorist worth to pay up for a company accelerating and sell a decelerator quickly, dump it. once the moe men men tum slows, it shrinks for ages before the bottom, and people's patience can't hold out that long. >> caller: hello, jim, how's it going? >> good, how about you? what's up?
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oh, my question is, i have a new college graduate, graduated for a year now, and i have been investing on my 401k, and what my investments should be in bonds and stocks? >> okay. no bonds. congratulations for graduating. when you're in that age, here's what you do. you got to pay down the loans, obviously, high interest rate, but be in growth, growth, growth, because you got your whole life ahead of you if did doesn't work out, make the money back with your paycheck. discipline of new diversified portfolio trumps where the market is headed. you need a fast grower. preferably a secular growth stock. stay with cramer.. mr. cramer, absolutely love the show.
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there, man. >> my kids are in elementary school learning so much from you. >> i know you hear this all the time, jim, but thank you, thank you, thank you so much. >> this has been my best year by far and away in the market. >> i thank you for, you know, looking out for the regular guys out there. >> great to hear your voice and know that you're there for us.
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happy holidays. tonight, i'm focusing on different types of stocks showing you how to diversify by strategy, a tool box that works in any and every market no matter how tough. so far, we talked dividends and growth. what else is special for a truly balanced portfolio? how about something to keep you focused? in my view, own something speculative, even a speculation considered to be a serious word in the business. except, of course, here, we invest orthodox. not only is it okay to own the tempting, risky, broken stocks that trade in the single digits, but it's a necessity as long as you follow my rules to speculate wisely. you need speculative in the
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things break your way. high risk, hi reward stocks are enthralling and mystique to owning something that trades in the single digits, although many trade at high dollar levels. they allow you to stay engaged and make it easier to keep the head in the game. you always hear speculations are the height of your responsibility, but i say a portfolio without speculation, without a long shot, is a portfolio that does not capture your fancy, has you bored with your money, and anxious to surrender to people who only care about taking your fees or making it just so you're not focused enough to do what's right with the rest of your stocks. now, speculation doesn't keep you interested when you do it wisely with the right rules and discipline, but the stocks generate enormous gains, massive returns unheard of in the stocks of well-liked and well-known companies that are deemed safe. did you know one point in the
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speculative stocks? home depot failed the first time around, and idea of paying for television when you get with rabbit ears was being an idiot, however, the biggest wins came in speculation. you can see some of them, detailed in "real money," the old day, a fund i retired from more than a dozen years too. when done wrong, swimming in that water can lead to gut wrenching losses. understand i'm not golfing the risks here. okay. two kinds of stocks that trade in single digits, hated broken stocks of troubled companies that are abandon and left for dead by big institutional money managers and relatively unknown stocks of undiscovered companies. both cases, you get the edge, one impossible to have in the heavily researched, intensity volatile stocks of household
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boys do not touch any stocks that trade under $5. you're benefitting from classic misprice created by overly pessimistic worry wart money managers. mutual funds don't want single digit stocks thinking they are too dangerous. they are afraid they will be questioned by the clients why they own the junk. about why they risk money foolishly when there's safer stocks out there. these money manager fear downside of stocks that look broken like sprint, that we identified at two bucks, right in at three, panning out, both were shoed by any of the big mutual funds out there because of the ramifications of owning single digit stocks. you have no overlords looking over your shoulders to put pressure on you not to buy the stocks. how do we find them? examine the bonds in sprint, stock going down when the stock was at $2. that's an important part of the e equation. sprint had so much debt. consider them worthy. we bet that what the bondholders
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stock. that's what happened. rite aid, we understood remodelled stores did better than the older ones and how well rad did with private label merchandise. it all came together in a successful speck. when the fundamentals of one of the companies turn, buy the stocks at driven prices because big boys do not go near them until they are higher. i don't like it at four, but eight? feels like these don't come around every day, though. we speculate tiny companies that people never heard of, and with them, we're not trying to catch a turn around, but look for sectors that seem like they capture the imagination of the crowd. the next hot fad, that's okay, look at fads too, that sweeps through the fashion show. sometimes, but not always, the fad backs up by earnings, which is what we saw with all the little companies that make cell phone kpoencomponents in 2009 and 2010. the names with the biggest
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saw it again in tiny oil companies that were sitting on huge holdings or small bioteches that were ditched from big pharma companies or fda approvals for important new drugs. these situations do often, however, have the life cycle of a may fly though. the trick is always remember to lock in your profits when you have them. don't get burned when interest wanes. cut some of it down. second, your losses, those, cut before they are too large. when a speck you thought would work was not panning out, just leave it. when you speculate you're not trying to find a stock you can buy and hold forever, just something that's going higher. as long as you're disciplined, it doesn't matter if the stock comes down later. don't take that as a license to own the stocks of companies with bad or deteriorate inging fundamentals, though, because that's the essence of stupid speculation. for example, we like high max
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trades when we did them on speculation fridays. when lightning strikes, take all the gains, please. sell, sell, sell. they cratered, and we never looked back, but callers say, listen, jim, you loved it, we loved the trade, that's different. bottom line, own something speculative to keep the new diversifyication to keep your stable, not bored, and rack up huge gains. stock start at speculations and because it's starting at three
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we're back after the break. hey buddy, let's get these dayquil liquid gels and go. but these liquid gels are new. mucinex fast max. it's the same difference. these are multi-symptom. well so are these. this one is max strength and fights mucus. that one doesn't. uh...think fast! you dropped something. oh...i'll put it back on the shelf... new from mucinex fast max. the only cold and flu liquid gel that's max-strength and fights mucus. start the relief. ditch the misery.
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all night, i preach and teach building portfolio stocks that work in any and every type of market from the nasty to the bears to a euphoric running of the bulls. own something that's right for the moment. it's what i call the new diversification. when i originally came up with the idea of the new diverseifyeify diversification diversification, always have foreign exposure in the portfolio, but given how the multiyear mess in europe, the slow down in china, and emerging markets crushed repeatedly and frequently, well, weoncept. you need a stock in safe yes yog my. at a time, you need something international, and not just something doing business overseas, but an actual company based in a foreign country. in other times, when the rest of the world is falling apart, the united states looks good by comparison, you need a stock that gives you domestic security, something that's
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of the country because at those moments, exposed to the rest of the world is danger. what do i mean by the concept of security? anything that's usa all the way. own a phone company like verizon or at and t or coned or popeyes louisiana kitchen, a little overseas expoture, but not much, or dollar star, dollar tree, dollar general. home depot pulled back. what about a real estate investor trust or tangler factory outlet, or just an etf. the point, though, is that in times of international turmoil, this plot should be filled by something all domestic. in times of domestic turmoil where the rest of the world is in better shape, which is where we were in the financial crisis, for example, then you do want to own a foreign company. bottom line, always own a stock that's from a safe geography. sometimes that means a foreign company. sometimes it means domestic security, all-american,
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believe me, you want to go domestic. at least for the foreseeable future. we're back after the break.ak.york apartment, but the rent is outrageous. good thing geico offers affordable renters insurance. with great coverage it protects my personal belongings should they get damaged, stolen or destroyed. [doorbell] uh, excuse me. delivery. hey. lo mein, szechwan chicken, chopsticks, soy sauce and you got some fortune cookies. have a good one. ah, these small new york apartments... protect your belongings. let geico help you with renters insurance. i'm here at my house, on thanksgiving day and i have a massive heart attack right in my driveway. the doctor put me on a bayer aspirin regimen. be sure to talk to your doctor before you begin an aspirin regimen. go talk to your doctor.
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(politely) wait, wait, wait! you can't put it in like that, you have to rinse it first. what's that, alfredo? no,that can go in. no it can't! what are you, nuts? that's baked-on alfredo. baked-on? it's never gonna work. dish issues? trust your dishwasher with cascade platinum. it powers... through... your toughest stuck-on food. better than finish. (to the hostess) see, told you it would work... (turns to girl 2) you guys heard me say that, right?
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all night, i've been talking about new diversification, a way to diversify by strategy, not stocks, so you thrive this any market. last, but not least, you need gold, one that makes the metal precious. i don't want this one to be 20%, that does not work. it's way too much. i think that 10% is the limit.
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no worthwhile insurance policy should be 20% of the money invested. why do i like gold? gold goes up when everything else goes down, insurance against economic or geopolitical chaos, uncertainty, and inflation, all things that cause stocks to decline, but causes price of gold to rise. before you curse me out, you don't own a home without homeowners insurance or a car without car insurance. it's the best performing asset year after year for the past decade. every other class disappointed you. it was a winner for a long time, now it's cool. owning gold is not about the upside, though. it can be considerably, but it's about minimizing risk to the downside. at any given moment, there's a host of the factors that are, you know, there's sectors from international, minerals that outperform gold, but none of
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policy policy. the least risky way is etf called the spider gold shares. most people know it, gld, owning the metal itself and tracks price. some of the dealers i deal with, listen, doesn't always track it, but you can potentially call your broker and buy the physical bars of gold. the cubes like in my soup, but it makes sense for those with lots of money, afford to buy in bulk, and pay to store it in a bank. you can't keep it at home. what about the gold miners? pick the right company, low cost, growing production, it outperforms the commodity for a period of time. it's note going to trade in lock step with the commodity, and what makes gold valuable here, of the ground cheaply, and there's not a lot of new mines, illous. it can be screwed up by debt, mining costs, management teams that make mistakes all too well. virtually every single time i
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they have shut downs at mines, startup issues, delays, and every time, things go wrong. the stocks are hammered even if gold goes up in value. i give up in the entire group and just stick with the gld or the fiscal commodity. bottom line, if you want exposure to gold and not only want it, you need it, it's your portfolio insurance policy as everybody should have some, then you should just do the easy thing and own gold for the gld, not some gold miner that's loosely connected to the price of the underlying commodity. stick with cramer.ps' fiber good gummies plus energy support. it's a new fiber supplement that helps support regularity and includes b vitamins to help convert food to energy. mmmmm, these are good! nice work, phillips! the tasty side of fiber,
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there you have it, new diverseifyication diversification.
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>> welcome to "teen kids news." i'm livia. let's start with our top story for this week. we've all heard the saying that "sticks and stones may break my bones, but words will never harm me." well, when it comes to living a healthy life, alexa found out that may not always be true. >> according to a government study, more than half a million teens have an eating disorder. even more surprising, you may be talking yourself into an eating disorder and not even know it. joining us to talk about this is dr. megan jones, a psychologist from stanford university. welcome. >> thank you for having me. >> thank you for being here. doctor, how can the way you think and talk about yourself affect what you eat? >> how you think and talk about yourself has a huge impact on how you eat.
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way about your body and about food, then that will take you towards healthy eating behaviors. >> okay. are there "red flag" words we should stay away from, even in our own thinking? >> absolutely. red flags are words like "good" or "bad," or even "healthy" and "unhealthy." so words that mean extremes, that are black and white. so when we have rigid rules about food, that sets us up to have less enjoyment in our eating. >> and that enjoyment can also mean less healthy eating? >> absolutely. unhealthy in terms of fighting with food or feeling like you're guilty if you eat the wrong thing. there's no wrong thing to eat. it's just how much you have of it. >> well, i guess we should change the old saying "you are what you eat" to "you are what
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>> yeah, exactly. >> there's also a new app called go lantern. tell us about that. >> so, go lantern is a mobile app that can help individuals get feedback about how they're feeling and how they're acting. so you can take an online assessment, which is free, to get feedback about different aspects of your emotional life and how you're doing. so you can get feedback on your body image, your eating behaviors, and also your mood, if you're feeling anxious, how your sleep is, and then you can pay for a subscription to lantern, which would then give you access to a coach, who's a professional, who will give you feedback and support, while you use a program that will teach you tools and techniques to improve how you're feeling. >> very interesting. well, doctor, thank you for
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>> thank you for having me. >> for more advice from dr. jones and the lantern app, there's a link on our website. for "teen kids news," i'm alexa. >> this message is brought to you by the national road safety foundation. they want you to keep your hands on the wheel, your eyes on the road, and your mind on driving. [ horn honks ] [ camera shutter clicks ] >> it's an export no one wants -- debris from a disaster.
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>> it was a tragedy an ocean
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