high yielder, growth stock, geographically safe stock. stick with cramer and i will teach you how to pick the best in each of these crucial categories. why don't we talk to sean. >> caller: thrilled you're having the show. >> great. >> caller: i would like to thank you for inspiring young investors including myself. i'm a 21-year-old finance major at florida state university. i want to get your opinion. >> first, i say go 'noles. my first job out of school was to cover florida state and florida a&m and i love people in their 20s must take risk. i say that because everyone is so darned risk adverse these days in life. they don't understand you need to own speculative and high growth stocks and stocks just growth stocks. that will be the mix of diversification if i were back in my 20s. in my 20s when i spent all my money at "big daddy's" in tallahassee on that beat your head in night, called beat the clock, the drinks started at a nickel, i should have put the money in the oil stocks. how about helen in illinois? >> caller: hi. this is hele

gin i'm biased against too good to be true gh yielders, ( how do y make sure the dividend is cure? yoyolookt thearninininer share, eps. my rule of t tmb if a coany has eaeainin twici its divididd payout,xwe k kw an sustaia a divide, evev in lean times en yououhink the earnings arer going to slink. -- to shrk. in that case, yore home-e-ee.. look at the caca flow, dealing with com with companies witita t of costs. think of places like verizon andat&t&tcococoication stocks don't comemeheaplyly jim, then'fohat eld.. wa a s sond. these amamzaon don't come ou the comomny's a aual shdo sw thcoany'y'wort and they can tell the health o a dividend. i a% asksk how can i recommend these stocks? aren't i bei reckless whenhe eaeaingsarely cor the e dididends? it's bowowbecae of thehbounty efefctivelcash flfw.w. if yououon't understand that. get back to even and how to fi t whatathe c cpany'sash flowow really is.s. maybe stk to earnings per shshe ififououon't uerstand it. the balance shhe debt due, mamae theye e o e.e. the mons comingue in thnear fure d thmpanan caraisititith thba or puic it may

pablo: you have seen significant components of the whole story, and high-yielders have them quite wells where we saw most of the stress in the past. it is local markets doing particularly well in these rallies. this is because of the strong dollar. devaluationuse of out of china. the yield you were capturing with the local market is very good. alix: we have seen over the last few weeks that there are more flows into debt showing emerging markets than equity in emerging markets. a very staggering shift. you feel there is more rotation to this? step is think the first the removal of the headwinds. that is very good. where we are going to start see tailwind, that potentially could be better for equities. we need to see growth coming back. tracy: they stopped being bad, but they are not awesome. pablo: you could call it that. stuff not being that was particularly great. if you look at the local market with yields of about 10%, when the currency depreciated relative to the dollar, we are here today. tracy: we have seen this amazing rally. will it continue? what happens if the u.s. dollar st

. >> caller: you talked about accidental high yielderers and the building might get caught. dividend gets tough. is it okay to buy a stock like potash? >> no, no, no. it's a commodity. the ag business isn't strong. i don't want you to do that. i never like to reach for yield. well, no. periodically it's worth it. i don't want you to do it. ix-nay on that one. the fed is back on the front burner. depending what it does next week could be another champion or very, very bad. on "mad" tonight ulta faced an ugly sell-off a month ago. last night's earnings were a thing of beauty. where should you stand with the stock? i'm investigating. that wasn't the only stock winning the season. paid off right into the reports. and then nr g energy fell 56% in 2015. up big today. has the utility regained energy? i'm taking a look at the rise and then the fall. so why don't you stick with cramer? >> announcer: 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. m

so if all of your portfolio or even one-third of it was made up of these high yielders, you lost a lot of money even though the first half of 2013 was fabulous as a whole. that's the danger of not being diversified. we'll get more interest rate you can see thes. those of you in those stocks will get hurt again. apply that logic to your 401(k). do you want to invest your retime money in the same company paying your salary? that would mean you're putting your savings in the same basket as your paycheck. what if you worked for enron? how about the earlier iteration of eastman kodak for more recent less unsavory example. or any other company that goes under. you lose your job, you lose your retirement savings. it's lose-lose. you think it's conjecture, you know, i used to have a radio show called "real money" and i got a giant number of calls telling me to stop bashing enron. why? because the callers had a ton of stock in the company. i then came back and explained that perhaps they needed to diversify away from enron. each time i did it, i heard about how they got discounts or how such a

the market bottomed because the best performing group of 50 stocks in the s&p 500 is the highest yieldersthe way up and on the way down and on the way up, and when you see that kind of outperformance you better have a good reason why you don't think it's going to continue going forward so this whole trend of investors moving towards higher quality. >> show that support is sticking with that group of stocks so at this point the question we put for the is do you stick with the ones that have been work. what does your data indicate in terms of continued outperformance? >> when you look at the performance of the highest dividend paying stocks, dougs on the dow, even -- not even including this period, investing in the highest dividend paying stocks, long-term it's a good strategy. s&p 500 since -- the dogs. dow since 2000 have outperformed 11 out of 16 years and outperforming this year and when you see this going forward, you're seeing, again, the move towards higher quality, and when you see the -- everyone says that when the -- when the fed headaches rates you're going to see the dividend pa

high-yielders have done quite well. there is where we saw all the stress. differentiation by asset class. this is because of a strong dollar, because of irrational fears of devaluations out of china. bit of the tailwind taken away from the asset class being narrowed territory for three years. flows intow more debt in emerging markets and equity in emerging markets. a very staggering shift. ablo: i think the first step is the removal of the headwinds. that is good for debt. when we will start to see some tailwind, that potentially could be better for equities. we need to see growth coming back. alix: when things a stop being bad, but are not awesome. >> to stopping bad would be great. if you take a look at the oil you get double-digit returns year-to-date. >> we've seen this amazing rally. will it continue? what happens if the u.s. dollar starts strengthening again? >> that would be one of the headwinds we've seen. the question is, how much stronger can the u.s. dollar get? we seen a change in the sensitivity to the u.s. dollar. -- inay mother's a bit of a w