Listen to Jim Cramer’s personal guide through the confusing jungle of Wall Street investing, navigating through opportunities and pitfalls with one goal in mind - to help you make money.
Mad Money w/ Jim Cramer
Mad Money w/ Jim Cramer 8/5/24
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It's exactly what you'd expect at this point in the rate cycle, the point where the feds are about to start cutting rates to bolster the economy, but the economy is going down. And that means we can use our playbook. We can use our sell-off playbook to protect ourselves and take advantage of this decline. Yes, take advantage of it. Now look away from it. We're looking at the worst three days lost in the NASDAQ in more than two years, including today's 3.43% doze dive. The Dow and the SP500 didn't do much better. Dow plunged 1-0-3-4. Yes, that's right at 1-0-3-4 points, S&P plummeting 3%. Oh, this is enough to get you thinking, well why should I stay in this market? And yet history says that's exactly what you have to do. So what is the playbook here? First, you need to figure out what's going wrong, starting with the epicenter of the damage. Find the epicenter. In this case, the epicenter, well it's not here, the sell-off started in Japan with an e-card down 12% last night, 12% in one night, a horrendous decline. That's the worst since the crash of '87. That dropping was related to overextended money managers who got quote for the pants down when the bank of Japan decided to raise interest rates. These fund managers had borrowed money to make bets worldwide, so they got crushed worldwide, including here when things went against them, and they couldn't come up with enough capital satisfy the margin clerks. And there's nothing more dangerous than owning a stock that your fellow shareholders are being forced to sell. We don't know when they're going to be finished, so it's so hard to call upon them. Unfortunately this market came out a real rebound, it cannot do that, until we know these sellers are done unwinding the trades. And that's the point, including this time, it's impossible to gain, hence our cautionary constructive approach, and I don't mind it. Second, you have to analyze what people think is wrong, because it's important to know what they are blaming. I call this a pin-to-tail in the sell-off, even though I may not agree with it. So often the money measures set the tone are actually acting when mistaken information. But they run a lot of capital, which lets them control the discourse even if their knuckle heads. There are three reasons why these ill-advised people are selling. Reason A, they think the Fed screwed up so badly this week that they should have cut rates and cut rates hard. These sellers argue that the Fed should have realized that the economy is weakening, that consumers are on the ropes, and employment has slowed. As we know from Friday's jobs report, "Well, I agree that the Fed probably should have cut. I honestly don't think a quarter point would have really mattered, believe me." If things get truly ugly, well guess what? Jay Powell will cut rates. He is not an intransigent stuffed animal. He's a living-breathing Fed Chief who's got a horse sense. B, in the wake of tech earnings, there's a widespread belief that the Magnivesists have in our hopelessly overvalued. I think that this one's already overdone, in some cases, depending upon which of the seven you're talking about. As I see it, meta deserves credit for having a real return on investment of AI. Apple had a terrific quarter. In fact, Apple's been able to take advantage of all the money Microsoft's spending on AI, putting Microsoft's platform to work for its customers to try and disclose some. Sure, I know, Amazon, okay, okay, not a perfect quarter. They said the customers held back from spending because they're distracted by our wild political situation and also the Olympics. Now, maybe Amazon's wrong, but they are not disassembling people. I trust them. I trust the reasoning. They've actually never bagged me. Also, I'm not giving up on NVIDIA just because an article said that it's late as high in semiconductor iteration called Blackwell is late. They're in quiet period. They can't defend themselves. My information is that nothing has really changed from what Matt was saying at the beginning of July. Blackwell will ship in volume in the second half. That's the case. Well, we won't notice the delay, plus at these levels I think NVIDIA is a buy even if the new chip is late because the demand for the current ship, the H-200, is insane. Still the rumors are swirling up Blackwell. The device runs too hot. You won't get clarity into NVIDIA reports at the end of August, which is a mighty long time for this great copy stock to be in limbo. So do not be aggressive. Let it come to you. It is coming down. Reason see why people are selling more and bump in sold half of his Berkshire. Berkshire actually share an Apple, something that couldn't be predicted. He just sold his virtues back in the manual meeting. Did the something change? Well, given the profits of your shareholders still, by the way, peerless reputation, it is freaking people out that the guys dumped in half of his position. You know what? It did call wholesale dumping in the Magstock itself, even as the companies got a tremendous runway for the rest of the year. I say for the moment, there are no tech safe havens. If you're going to buy buy slowly and in small increments in pyramid style, please remember, I just squeezed the bears on this one. I think Apple should be owned, not traded. Same goes for NVIDIA, believe it or not, but I recognize their stocks are still way up and many investors just want to take profits while they have them. I'm not blind, but we diss them both. They can fall further. They probably will. If they can't take the pain, the house of pain, they get the heck out of it. Now after you identify the episode of the selloff and how investors are justifying it, you need to figure out what you can buy that's outside the blast radius. We must always remain constructive and opportunities even with our eyes open now. Many people believe that because we've gotten some weaker backward numbers, we've got an argument. You don't have a recession with 4.3% unemployment rate. Historically, the difference is the low number. You don't have a recession when the economy is still creating jobs and no big bankruptcies. To me, that means you can actually buy the banks. Yes, I know. Warren Buffett is selling Bank of America. That does not mean you should get rid of the banks. It may mean that they've been trashed for no reason other than in selling. That's a good opportunity. You know what? I like the stock of Morgan Stanley's for my trust. It's got a 4% yield. I think there'll be more acquisitions than IPOs in the next year. This one folded like a cheap suit in the last three days, hitting his action. It could kind of end here the selling with a high yield, lower yield environment. It's worth a try. You buy stocks that yield more than 4%. Take advantage of the sudden decline in interest rates, which makes high yielding stocks the best game in town for income. Hey, you know what? Stay tuned. I've got some others to buy. Fourth, make sure you have ample cash to take advantage of the next decline if there is one. I believe there will be. You need to sell the bad to fund the good. You do not want to sell the good to fund the bad. We know that it's time to put money to work, but we still haven't done anything for the travel trust. That means that we've cut down our cash, which is not yet. We don't want to put too much money to work at one level. We did not put net new money to work today. It wasn't enough. It wasn't low enough. There's still room to fall. We don't know if the panic comes back. We don't know what's going on in Japan. We had a fair level above 65 this morning, as measured by the volatility index or VIX. We haven't had that since March of 2020, in the height of the COVID panic. I think we got to be ready for more fear. Fifth, the market needs to get really oversold before you put a lot of money to work. We aren't even there yet. We weren't even negative on the SBA's. Later, I follow until today. It went out tonight at minus 2.47. That's the start. Buy something here. You have to be prepared to buy more into wheat this because, well, the liquidation continues. I would be, let's say, circumspect. I would be more comfortable with a minus five reading as a sign of a viable panic. Not minus 2.47. Maybe early. Finally, we need to know if there's anything moving that we just can't see right now. I don't see it in America, the commercial real estate market. I think that fear is overdone. Yeah, presidential race. I'm not worried that a Harris administration would be anti-business. Her advisors include real business people, something President Biden never embraced. However, she does favor a much higher corporate tax, and no one's even talking about that. I don't see any big bankruptcy or disruptions in the system. Nothing that is systemic. We did have excellent earnings tonight from CSX, Palantir, and Lumen. The last one's a real shocker. Those don't strive for the negativity or the recession thesis. We do have a lot of earnings coming up. Hey, these can be telling Caterpillar, Builders First Source, Uber tomorrow morning, Airbnb, Super Micro tomorrow night. They could all impact trading, so could Shopify, Emerson, Robinhood, Wednesday, Eli, Lily, David Dogg, the trade desk. They help customers place web advertising on, that comes up Thursday. That could be make or break for Google, which wasn't a suit about any trust suit today. Anyone of these stocks will be used as part of the prism of procession over session, the bottom line. If we check every box, we recognize that this hideous decline will ultimately, ultimately, that's the operative word. We're more of an opportunity to buy that reason, so then you should put out your shopping list, get ready, start picking at your favorite names. We are doing it for the Investing Club in good time. You should join just to see what we think the coast is clear. We haven't yet. Remember, you only want to buy the stocks that you'd be willing to buy more of on the way down. Otherwise, I can tell you right now, you will get blown out in disappointment and anger. Let's go to Regina in Florida. Regina. Hi, Jim. How are you doing today? I'm doing well, Regina. How about you? Good. Good. Okay. My question is, I'm a long-term investor, and I want to tell after last week's report, I'm down about 35%. My question is, should I sell and reinvest into another stock? Wait for it to go back up. Yeah. And you should sell and tell. You should sell and tell. They have no credibility whatsoever. Either balance sheet is miserable. Could it bounce? I can't sell half tomorrow and then hope it bounces 23, but that's what you're going to get. And I owe you, Regina, to say that. I can't just say, you know what, it's fine, because I don't believe it is fine. All right. Let's go to Joe, my homestead in New Jersey. Joe. Hello, Mr. Kramer. Joe. I want to let you know surf fishing at Island Beach State Park has been pretty good, catching a lot of flukekeepers. The fluke are biting. The fluke are biting, okay? I caught a pork in the other day to throw it back. My wife says you can't hurt a fish. That's not my fish. You better be able to. You better be cannon. I mean, if she's cannon, maybe I can catch something. What's going on? With Scott's Miracle Grow at near highs with better than average price targets and a nice dividend is at a buy. Okay. It is a seasonal product. They had a good season at yield 3.7. They do have, by the way, some very environmentally friendly stuff these days. I say it's too high. It sells at 26 times earnings. I could buy high quality tech at 26 times earnings. I'm going to say pass. Let's go to Thomas in Georgia. Thomas. Hey, Jim, big shout out to you and your entire team that works for the investing club from the bottom of my heart and the top of my birthday. Thank you. And we are cracking this stuff. You need help. We are there to help. Let's go to work. Yeah. Today in particular, lots of comfort comes from you guys. Thank you. Start off my childhood. Yeah, my question is about UPS. I'm a long time shareholder. It's one of my core positions and I do trade around that position. My last sale was back in '22 at around $230. I haven't really wanted to add to it as it came down and down and down. But now it looks really attractive, but you're fond of the old adage when the facts change, I changed my mind. Right. Is UPS not the company it once was or is it? It was not the company once was. FedEx is a better company now. I've always liked the stock of UPS, but I cannot recommend it. Now, that's very interesting. I couldn't recommend UPS. I said that Scott's miracle grow is too high and I said Intel must be sold. So I guess I am part of the group that sees that things are wrong, not that things are right, but we're going to be patient and we're going to get their constructive criticism of this market is fine. Days like today tend to scare people away from the market. That's what happens. Get these days every year, there are some like this. I need you to think of what this will only be a buying our team emphasis on ultimate. But I know that it's too soon so far and people are going to sell it. This market goes up at all the morning. They are going to sell it right into it. All right. I don't may have money tonight. And at the afternoon like we had today, your biggest enemies are your fellow shareholders. I'm sharing where their mindset starts. Then we're all about finding opportunity in the face of panic. So with the tenure now yielding below 4%, know what I'm doing. I'm finding stocks that yield above 4% and I give you that they will have peace of mind and a market meltdown. Hey buddy, speak of you. I'm seeing if Tanger SKT could be the right to read for your portfolio in this environment. I'm very attracted to it. We have the CEO one. So stay with Cramer. Don't miss a second of mad money. Follow @chimpcramer on X. Have a question? Tweet Cramer. #MadMensions. Send them an email to madmoney@cnbc.com or give us a call at 1-800-743-cnbc. Miss something, head to madmoney.cnbc.com I prepare like no one else so you can be prepared for any market. When bears growl at the market, I know you're tired of it and I'm tired of it, but we get used to this sound. Cramer roars right back. It's a fundamentally clear that right now it feels like no price is safe enough to buy. Stocks may be down, but mad money is never out. My mission is to make you money. With Cramer, let's find your portfolio's next big winner together. At EverNorth Health Services, we believe costs shouldn't get in the way of life-changing care and we're doing everything in our power to make it possible. Behavioral health solutions that also keep your projections at their best, it's possible. Pharmacy benefits that benefit your bottom line, it's possible. Complex specialty care that cares about your ROI, it's possible. As we're already doing it, all while saving businesses billions, that's wonder made possible. Learn more at EverNorth.com/wonder. When you're hiring, the best way to search for a candidate isn't to search at all. Don't search. Match. With Indeed. 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Visit pbcincorporated.com to try the flavor merger of the century, Jeff, PBNC. In this kind of downturn, your biggest enemies are people just like you. I'm talking about your fellow shareholders. Let me tell you what they're thinking because it's not good. We've started endless prattle today about how the feds asleep at the wheel and Jay Powell was clueless at the Fed meeting last week. So this whole selloff is on his hands because he didn't cut rates. We apparently learned that we're headed for a recession, which I said, are you kidding me? The Fed had cut by a quarter point last week. Would that really be enough to fend off a recession? Give me a break. A quarter point won't do much of anything. That's just the convenience used to sell. As I said at the top of the show, Warren Buffett's selling shares in the Bank of America and Apple giving the Bears another convenient series today. We have no idea whatsoever why he's sold. He doesn't issue a release. We have no idea if Buffett thinks they're too high or if he's worried about the market. We don't know if he wants to buy him back at a lower level. It's absurd to take action on these sales by Berkshire Hathaway. I love Warren Buffett like you do, but he doesn't work for you and he works for his shareholders. And he isn't going to say why he does anything if he doesn't want to, fair enough. Stop assuming you know why he sells. But the biggest problem with the fellow shareholders is simple. Despite the last few days, the stock market still up giganticly this year. The Dow is up 2.7% for the year, the S&B's up 8.7% and Nasdaq's up 7.9% percent. Those are great, even as it was crushed today. That's really high. Those are the stats that make me most worried about this market. The only index that's close to being done for the year in terms of being down is the Russell 2000. The small cap index that Wall Street had a whirlwind romance with, everybody fell in love with it, then fell out of love a week later. It turns out if you bought it, you're basically flat, but if you sold the darn thing into this, it was a roach motel, easier to get into than to get out. People are even more tempted to take profits in a stock like Nvidia, which is more than double for the year. Now is the miserable chart. I totally get that. There was an intolerable feeling of panic about a story in the trade press this weekend that said Nvidia is late with its next generation chips because of production problems. Now, look, if you're up a hundred and three percent on the stock, that's got a story because in a panic, take dump the stock easily. Even as Matt's already assured us that new chip production is on track to ramp in the second half. Nvidia stock is expensive now, but it will prove to be cheap later. We just don't know when later is. There are a bunch of terrific stocks in the tech world that had great quarters, but when I hit them up, I can't believe how much they've gained this year, even after the sell off. Dell Technologies had an amazing quarter, and stock is now down off staggering 45 percent from its highs. Buying opportunity? Well, when you check the year-to-date performance, you notice that Dell's still up more than 28 percent for the year. You've still got a legion of fellow shareholders who'd be eager to take profits at a moment's notice at any small lift in the stock, even if it's tomorrow. Super micro stock is down over 50 percent from its highs. Ooh, but it reports tomorrow on the grunties, or it's up more than a hundred percent for the year. Again, way too many potential profit takers in this one to touch. See, the fact is this market has had an amazing year, even after the decline. So many stocks are up so much that your fellow shareholders are simply being prudent when they take something off the table. The people who own these stocks all year don't need much excuse to jettison some shares, and this market won't be able to find a real bottom until they work through their sales and finally exit the building. They have money's back if you're great. Coming up, it's 4x4 for you, looking for yield, stick with Kramer. Trading Ashwab is now powered by Ameritrade, bringing you an expanding library of education with Eden more ways to sharpen your trading skills. Set new online courses, insightful webcasts, articles, engaging videos and more, all curated just for traders. Plus, guided learning paths with content designed to fit your unique interests, no sifting to find exactly what you need so you can spend your time learning to trade brilliantly. Learn more at Schwab.com/trading. At EverNorth Health Services, we believe costs shouldn't get in the way of life-changing care and we're doing everything in our power to make it possible. Behavioral health solutions that also keep your projections at their best, it's possible. Pharmacy benefits that benefit your bottom line, it's possible. Complex specialty care that cares about your ROI, it's possible. Because we're already doing it. All while saving businesses billions, that's Wonder made possible. Learn more at EverNorth.com/wonder. After another hideous day, I don't want to add to this stereo, especially when I think that many of the fears that knocked us down are going to turn out to be overwhelmed. Although there's no denying that the averages are still very high, and as you know, I think could fall further. We're collateral damage to all sorts of worldwide financial problems, do you know what they started in Japan, not the US, I don't like to scare, I like to be constructive. My goal is to help you look for buying opportunities that have been created by the meltdown. For example, the stock markets get killed because buying yields are plummeting. That's often a sign of weakness, right? But man, the yield on the tenure treasury has fallen from 4.14% last Tuesday to below 3.8% today, that's rocket fuel decline. And you know what happens when treasury yields shrink? Dividend stocks get more attractive because treasuries aren't the greatest competition tonight. I want to highlight some of my favorite high yield stocks with dividends that give you a 4% yield or higher that can work in this environment because they have a comparative advantage over bonds. Companies can raise their dividends, but bonds can't make their yields larger unless their prices go down. First there's BXP, that's the old Boston Properties, which is a real estate investment trust that owns top-notch office properties in big coastal cities. Right now, BXP is the fifth best yield in the S&P 500 at 5.97%, and I don't like many other stocks with high yields. This one's actually got a good story. Like I explained this week, the office reads have already started recovering, and this whole industry will only get better when the Fed starts cutting interest rates. BXP in particular is doing very well in New York, Washington DC, and Boston. Their occupancy numbers have actually rebounded substantially from their lows as central business districts across America have almost gotten back to normal. High-end updated properties are doing better, too, and that's BXP's bread and butter. I recommended this one right after it reported, and now, thanks to the market-wide volatility, you're getting a stock at a $5 discount to where it was trading back then. I think, buy, buy, buy. Next up, you can't have a good list of dividend stocks about some pharma, right? So let's go with Bristol Mars Squid, which yields just over 5%. Bristol Mars used to be the poster child for consistent performance, but over the past couple years, there once sterling reputation, let's just say, it's been tarnished. They fell behind Merck and Oncology. This $4 billion acquisition of Selju has been disappointing as I unfortunately predict it. The revenue growth has been negative for the past few years, and for the first time in a decade, Bristol Mars even saw some earning shrinkage last year, hence why the stock's been nearly cut in half over the past year and a half. But now, Bristol Mars is under new management, with Chris Burner taking over his CEO last November. And I have to say, I like what I've seen so far, I like it. But last year, Bristol Mars made three separate multi-billion dollar acquisition oncology, and yes, the tough nut to crack, neuroscience. I think they're all good growth areas, and it's right to double down. Burner also announced major cost cuts as the company goes through the inner period. More importantly, he's given investors a clear timeline of what the turn on might look like. While he expects the next two years to be challenging, he's right up front about that, especially with some serious patent expirations in 2026 called Loss of Exclusivity, LOE. He thinks he can get the business to put up a sustainable top-line growth again, soon as 2028. Okay, I know. Long time, but look, that's going to keep expectations in checking to be paid to wait. Buyers have already started getting on board with Bristol Mars turn around. Ten days ago, the company reported a clean top and bottom line beat, driven by better than expected results, for some of their big-name drugs. Even better, Bristol Mars raises for your earnings forecast by 36% to midpoint. I didn't see that coming. It is encouraging. Now we can look forward to the future as Bristol Mars rebuilds. Meanwhile, the stock's dirt cheap, it sells for less than seven times next year's earnings as it's Bristol Mars. And again, there's that bountiful 5% dividend, which is suddenly a lot more enticing now that treasury yields have come down. I sent Bristol Mars paying it away. What else? Okay, after the bloodbath, the regional banks last year, which the group still hasn't fully recovered from, by the way, a number of these have pretty high yields. You know what my favorite is at the moment? It's just the Columbus, Ohio-based Huntington Bank shares, which yields roughly 4.7% because we just checked in with the CO last week, and I'm now feeling pretty darn confident about this one. Huntington Bank shares our age ban, as we all call it, had already turned in a strong quarter earlier this month. Looking back a bit, Huntington's loan at deposit growth is just the outpaces regional bank rivals over the past few years, but as CEO Stephen Stein are explained, now that we're on the verge of a rate-cutting cycle from the Fed, his banks poised to do even better. Huntington's stock rallied more than 13% in July, thanks to the good quarter and the rotation in the companies that have benefited from rate cuts, but over the first three trading sessions in August, this is crazy. Socks getting back almost all those gains for no company's specific reason, just pure panic, and we know that the panic can extend to all the banks. In other words, you get the second chance to buy Huntington Bank shares, I think you should grab it. Finally, I say buy the dip in Chevron, which reported on Friday morning, a lot of people hated that quarter, stocks fell nearly 3% in response. In fact, as oil prices have really rolled over the past three sessions, Chevron has lost nearly 10% of its value. It's breathtaking how badly this stock is acting. Down here, Chevron has had its lowest levels since January, trading from just under 12 times this year's earnings estimate, and I think it takes into account, at this point, the collapse in oil prices that we've had the last few days, 4.5% yield, one of the top integrated oil giants at a very attractive price. Of course, Chevron is currently in the middle of tricky acquisition. They're buying Hess from more than $50 billion in stock. Now that deal has been held up by ExxonMobil, which has partnered with Hess, and some of its most attractive development areas, in Guyana. Frankly, I'm not sure how that thing's going to turn out. I don't even know if I care at this point, because I like the stock of the 49% yield. Chevron's still confident that it can make that Hess deal fly, and I'm much more interested, frankly, in Hess's attractive, Permian base analysis, which will produce you more and more oil each year, much better, much safer than the far-flung projects in Guyana. At the end of the day, this is about buying into one of the most high-quality energy franchises on the planet. And you're getting a very good price, certainly better than the price that people paid a couple of weeks ago. Chevron's stock was already under some pressure, because of the confusing, and it is confusing, Hess deal. Now, let's get ahead again as oil and gas prices plunge due to the worries about the global economy. Also, with the kind of important Friday, the results were, "Okay, no less than ideal. I know Exxon was a star that day, not them." To me, it's all noise. As I see it, good opportunity for longer-term investors to buy what's arguably the best-run energy company in America. So here's the bottom line. Pardon my refusal to contribute to the panic. I know I'm supposed to do that. I can't do it. I'd rather use these periods of horrifying weakness as buying opportunities to upgrade your portfolio, especially when we're talking about buying stocks with high yields. Which ones? BXP, Huntington Bank shares, and Chevron, which we'll get a boost in the Fed starts cutting rates, and then for little insurance for some buyers. Yeah, it ensures policy against Shapel failing to act. I'm going to Sebastian in Pennsylvania. Sebastian. Hi. So, I had a question regarding General Motors. Sure. I bought General Motors right before it be on the earnings report, and it immediately tanked after the report, and I sold at $47. And I just wanted to know if now is a good time to get back into it. Okay. Stock's still up for the year. I'm questioning any stock that's up big for the year. This is up double digits. But it does sell four times earnings. If I wanted to buy GM, I would start here, but remember, in a recession there's going to be some Yahoo and us who's going to downgrade it. Why not actually wait a day or two and see what analysts decides? I can't take the pain, let's it down, and then you buy it. Tony in Florida. Tony. Hey, Jim, I want to thank you and Jeff today, taking your time, and let us get you through to some market the way it's going. I really appreciate you taking it. Thank you. That's our goal. You know, we still took more money out of the market than put in because we know, we think that our stocks are coming down. We are in no hurry. We're a patient, but we are going to make some money here. When the smoke clears, how can I help you, Tony? Yeah, this company had really changed my life. I've been on this drug for over a year, plus bank pounds. I started buying an 860 and I bought it all the way down to 822. It's a 50% of my portfolio. Really, I really should I buy more, hold it, or just-- Okay, you're going to have to wait. And here's why you're going to have to wait. It's viewed as being a kind of, I know this sounds strange, a Mag 7 stock, it's up a great deal. I think it's too expensive, but the charge band, when that happens, we just walk away. We walk away until we get to the right price. But thank you for your confidence. I really appreciate it. Jake in New York. Jake! Oh, yeah. Jimmy Chill. My name is Peter Cohen from The Big Apple and I'm not talking about the company. Anyways, I want to ask you about a growth stock with the shrinking market cap. They work with Clear Secure to help their travel customers. They work with Compose Secure to refresh their tech. They're number four in their industry, but number one in your wallet. You use it at Nobu, I'm talking about American Express. Should I borrow this? Yeah, I like American Express. Should I borrow this? I like it. Okay, so here's the way I would approach this. It's a $25 stock. When you get a stock, it's up in dollar amount like that. Let's say you wanted about 100 shares. You buy 25 at 223, nice level down from 256 where it hit. And then you wait another 5, and then another 5 is number 5. That's how you buy that, because the dollar price stock is encouraging people to just blow it out. It's not as good as wood, but you take advantage of it. All right, listen to me. I'd rather use these periods of weakness as opportunities to find really good higher yielding stocks, where if they go down, you get to buy more because there's nothing wrong with them. These high yielding stocks can be great bets here no matter what J-PEL does with rates. And the ones we selected, I think they're all dynamite, may have money ahead. Yes, my screws are with another good yielder. That's what we're trying to present to you, Tanger, fresh off of a beat and raised quarter. I'm seeing this stocks. Maybe it's the type of thing you should be looking at in a nasty market. If it works, then we cover warehouse, or a couple of weeks back in mid to the collapse in lumber market. I'm circling back to this best-to-read player with this CEO. You get the latest on where the story stands, and it's doing a heck of a lot better than the rest of the stock market, well, at least some of them. And then, of course, all your calls rapid-fired tonight's initially lighting round, so stay tuned for this special opportunistic version of Mad money. When buying yields come down, boy, they're coming down fast right now. Normally, that's fabulous for high-yielding dividend stocks because, well, bonds are the competition. Right now, people are so panicked that even though it's dividend stocks are getting dumped, it makes no sense to me. Take Tanger. Each real estate investment trust owns a host of factory outlet centers, places where consumers go for great bargains. At these levels, the darn thing yields over 4%, and you're getting that excellent last quarter for free. But do not take it from me. Let's take him with Steven Yall. He's the presidency of Tanger. Get a better release situation, but y'all, welcome back to Mad Money. Thanks for having me back. All right, so Steven, I was talking to David Faber this morning, and we were looking at who we had today. I said, "Oh, why?" We've got somebody that you've got to listen to because it's contrary to everything that people are selling, Tanger. That's right. And you know, look, we've been in business for 43 years. We've weathered a lot of cycles, yet the customer keeps on coming back, and that's really the most important part. The customer continues to vote for Tanger with their wallet. And if you have a so-called strapped consumer, a frugal consumer, that doesn't mean the consumer stops, just changes the venue of where they go. That's right. The consumer has so much choice now in the marketplace, whether it's shop from home or shop in store, shop on the street, shop locally. For us, our shopping centers, the one difference we bring is value every day, on sale every day, and favorite brands. So they're not buying commodity at price, they're buying their favorite brands on sale every day. In fact, I was at one of our centers today, a pair of Nike's, great, unbelievable deal, and Nike's coming back. Your business is really good in our business. Oh, that's important, because what's happened is you would see that first, because you need that inventory cleared, and then you have to have new inventory. Everything looks fresh and Nike? Yeah, first of all, the stores look great, and there's a lot of product. They're all gearing up for back to school. You know, back to school, selling season starts across the country at different times. We started as early as July 4th, particularly in the South, who schools are going back as early as next week. Now, one of the things that you would expect after such a race cycle, and everyone's now panicked, they're not cutting fast, you can't see a lot of bankages. In reality, among the big mosaic of stores you have, there really haven't been any. Well, there were a couple of bankruptcies in our space, but as I had said to you in meetings past, typically the last stores the retailers close are the ones that are cash flowing positively and the ones that are built. And so, as far as the two big bankruptcies that we heard about at the end of last quarter, we retained almost all of those stores. All right, now I was looking at the map today, and I'm, of course, I'm very excited about the bills, about Nashville, about Asheville, about Huntsville, but you still have a huge canvas of this country to put more places down, don't you? That's right. There's plenty of opportunity left for us. We're out there looking every day. And you know, look, what we do, outlet shopping centers, but we've also added a lot of other uses to our centers, better amenities, better food and beverage offering, better entertainment offering. And you know, it's almost as if our shopping center is not only the gear to the tourist that comes and shops us, but also that local customer. We want them to come every day. You know, since I met with you last, we added five Sephora stores to our portfolio. Right. That was great. I mean, Sephora for us, that's a customer, that's a store our customers shop far more frequently than some of the other brands in our portfolio, and we'll get to see that customer more and more. Now, when I look at Florida and California, you're not just Florida's small, California nothing. I mean, theoretically, if you wanted to, and I know you don't want to chase land, but you could have a good cadence all over the country, over say 20 years. That's right. And we continue to look. And in fact, there's a number of partners that are out there that think that they're admiring what we do from an operations point of view, you know, Tanger, traditionally, an outlet company. But now in order to survive in this economy, in order to survive in this market, in order to be competitive and get people off the couch and into your shopping centers, a lot of other things you need to do. And we're doing them. People have to recognize that your pastiche of stores is not really leaver to anybody. You could have 10 different companies go out of business and it would not necessarily impact you because you're so spread out and no one's got a big percentage. And also what's happening right now is there's not a lot of new product being added to the marketplace. So lack of product causes demand. Demand causes a lot of our retailers to renew and we're seeing record renewal rates. But even more importantly, we see a lot of new retailers that are coming into this space. So now we have to make some strategic decisions. Do we renew the tenants in place? Or do we replace with new tenants that we think are going to be great, B2B, bring new businesses to our shopping center, great B2C, bring new consumers to our shopping center? We're constantly thinking, how can we continue to flow freshness into the center? How can we continue to drive traffic into our centers and how can we continue to grow our revenues? Places that have always regarded themselves as premium who now want to be in your place. Just describe some of the people, some of the companies that have just said, you know, what we have to be in Tanger, we can't just say we don't want to be in, let's say, a big bargain place. Well, you know, there's a lot of the fashion brands, for example. You know, Vince and Ragan Bone and I know you shop in Riverhead and those brands are very present there. A brands like Lulu Lemon, brands like Tori Birch. I mean, these, here are brands that are on Madison Avenue selling their product every day yet. There's a consumer that they get to see in the outlets that they don't get to interact with in any other, their venues. And here's an opportunity for them to get them excited, trade them up in their store. Once a customer gives their credit card, they become a customer of yours. You own that customer. You get to pick on how you want to communicate with that customer, whether you join their loyalty program, your email address, and that brand has an opportunity then to trade you up through their ecosystem and get you to buy more, more frequently. And that's what we're looking for. Well, you're exactly the kind of CEO and exactly the kind of company that we need to hear from on a day like today, when people are very nervous, that they are nervous and translate into big sales for some companies like yours. At Stephen Yaw, President and CEO of Tanger, a company that we have endorsed for all the 20 years of mad money and we'll be back in a few minutes. Thanks. Coming up, pop open those umbrellas and tee up your toughest questions. Kramer takes on all comers in the lightning round, next. And then the lightning round is over. Are you ready, Steve? Yeah. It's over the light round, but it's good. Joseph and Florida. Joseph. Hey, Jim. How are you? Well, Joseph, I'm just feeling bad for everybody who's out there trying to figure out what to do. I'm trying to give them some help. How can I help you? Hey, man. It's been a bloody mess today for sure. Yeah. I have a great, I have a very good question about Boeing. I just wanted to get some insights of Boeing's long term evaluations based off of their quality parts. And I wanted to see what type of strength they have for the long term based off of them. Hey, I think they have long term staying power, short term, they have a cash flow pop. And am I here a cash flow pop when I say to myself, let's wait until it's clarified. It is not clarified yet. So let's be careful. And you go to Jordan, New York, Jordan. Hey, Kramer, thanks for taking my call. My pleasure. My father's watched his show for years, and he loves a huge fan. Now he's got me watching, and I'm thinking of investors. So I wanted to know, FCX, buy, hold, or sell. OK, it's a very tough one, because it's in two markets, in data centers, people think they're slowing. And it's in EVs. They are definitely slowing. There's a lot of people feel that copper's in a super cycle. I think they're wrong. I wouldn't touch this stock until it breaks through $38. Go to David in Virginia, David. I'm not pressure Kramer at this, David. My stock is Delta Air Lines. I'm troubled by Delta even though it sells at six times earnings. I don't like this practice pink Delta in crowd strength. I'm going to take a real pass in Delta and look at other airlines if I have to. It's go to Alex and Massachusetts, Alex. Hey, Jim, how are you? I am good. How about you, Alex? Good. It's a crazy day today. Yeah, it really was crazy. I just wanted to... Oh, yeah. I wanted to get your thoughts on the chip software company Synopsus. OK, Synopsus is going to trade with NVIDIA. And right now NVIDIA is going lower. I don't know what else to say out in the fact that I do believe at a certain level NVIDIA can be bought, but I know it's hated right now, and people feel there's something very wrong with it. We'll have to wait and see. All right, now we go to Robert and Massachusetts, Robert. Hey, Jim. Happy Monday. I'm reaching out about Philip Moore, five feller holes. I'm not your guy, Philip Moore, so I don't recommend tobacco stocks. Never have, never will. OK, and that ladies and gentlemen's version of the lightning round. The lightning round is sponsored by Charles Schwab. Coming up, panic isn't a strategy, Kramer has your back, and some can't miss perspective. Next. Jim Kramer, die part of his doll. Hey, Jimmy. Love the show. My five-year-old handsome. Let's watch your show. I have to thank you for making us money when it's there to be made. Our world is a better place with you in it. Because the market's melted down in the last few trading days. You know, these are the worst speed data clients for the average since June of 2022. We got a stock that's only down about 2% during this period. That's warehouse, or one of the world's largest owners of timberlands. It makes perfect sense, because this helps all about a weaker economy, and that weakness will force the Fed to cut rates, which is great for a warehouse. So let's take a closer look with Devin Stockfish. She's the president and CEO of Warehouseer to learn more. Mr. Stockfish, welcome back to Mad Money. Hey, Jim. Good to be with you. Devin, when I look at your various businesses, and I know that summer we can talk about solar, I definitely want to do that. I want to talk about sequestration. But when it comes to just the plainout timber business, it seems like you're still buying timber, so therefore won't term your bullish, but you recognize short-term unless we get a change in the repair and remodel that you're kind of stuck in neutral. Yeah, Jim, that's right. I mean, we still have a very bullish look on what the timber market and wood products markets are going to look like over time. We are massively underbuilt in the US, and ultimately we're going to have to build millions and millions of homes, and that's going to be a strong tailwind for our timber business and our wood products business. But as you say, it has been a little bit tougher environment here of late with the higher interest rates, and we've seen that really play into mostly the multifamily and repair and remodel markets. And that's been a bit of a headland on, and several of our businesses is here of late. Well, why do you think that's so different from the housing market? A lot of people say, "Listen, isn't it all shelter, aren't they all one and the same?" Yeah, the single-family market for us is by far the largest driver of wood products. I mean, from a lumber standpoint, about three times as much lumber goes into a single-family house is a multifamily house. And so that's a bigger market for us, but multifamily plays into it as well. And the repair and remodel market is a really key. 40% of lumber demand in the U.S. is really driven from that repair and remodel market. And so, you know, we've seen that tick down just a little bit this year, and I think that's really played into the sort of softer environment that we've seen for lumber prices this year. Well, do you think that, like the stock markets used to be saying the last few days, you know, what we should have been cutting a long time ago, because repair and remodel is not doing that well. We don't have a great retail environment, or do you think it's just kind of business as usual, and the Fed will take its time, but do it right? Yeah, I mean, obviously, they have a lot of things on their plate to balance. I think from a housing standpoint, you know, one of the challenges that we face, there's a lot of demand for housing everywhere you look, we're under bill. The big challenge has been affordability with the higher interest rates, which obviously there are reasons that the Fed has kept the rates higher for longer. But that's really had a negative impact on housing overall. The big public builders, they've navigated it fairly well with rate buy downs and some other things. But the overall housing market really needs more supply. Ultimately, that's the solution that's going to bring prices down over time. So, you know, we're hopeful that we are going to see the Fed start to move on rates here as we get into the fall. Obviously, even just over the last few days, we've seen the 10-year come down pretty materially, and that's really directly tied into where we see mortgage rates. So I think as you see that come down, that's going to be a catalyst for more housing activity, which ultimately should be a pretty strong tailwind for our company as well. Now, you've been committed to returning a lot of minus shareholders. I think people are a little, I'd say, confused about how you return it, because they maybe want more dividend, maybe more buyback. But give us the current mosaic of how you're returning capital. Yeah, the beauty about our cash return framework is we've committed to returning between 75 and 80 percent of our free cash flow back to shareholders every year. We've got a sustainable base dividend that we grow every year. We've grown that 5 percent a year over the last several years, including earlier this year. And then with the remaining amount, we can pivot between supplemental dividends or share repurchase depending on, you know, that particular moment where we think the best return profile should be. That's given us a lot of flexibility. We've returned nearly $5 billion of cash back to shareholders since 2021. So it's a flexible framework. It allows us to return a significant amount of cash back to shareholders and do it in a way that creates the most value in any particular moment. Well, you've also done creative things that I think the solar and carbon sequestration are great. Now, solar, you talk about how it takes a little longer to get these things through the pipeline, but they've been good business for you. Yeah, absolutely. I mean, these are part of our natural climate solutions business, which is something that we launched just a few years ago, and it's really about leveraging the strength of our land portfolio to create additional solutions around climate and nature. And so that's carbon capture and storage, porous carbon, renewables, that solar, that's wind, that's mitigation banking. There are a lot of things that you can do with nearly 11 million acres of timberlands across the US. And so we're really excited about that. We're on the path to a hundred million dollars of EBITDA by the end of 2025. We think there's upside beyond that, but this is a really exciting area for our business and something that we expect to continue to grow in the years to come. People should know that you've probably been the company most dedicated to cleaning up the air, because trees clean up the air and you plant it and you build and you bought. Do you think you're the number one defender of climate in this country? Well we've certainly been focused on this for a very long time. Sustainable forestry goes back nearly a hundred years at this company, and as you say, Jim, there's really no technology today that's better at taking CO2 out of the atmosphere at scale at a reasonable cost than for us. And we're very, very focused on leveraging that resource to really help mitigate climate change. We've got a lot of things going on that front. I don't know that it's necessarily always fully appreciated, but it is a big part of how we run the company has been for a long time. And I think beyond just the impact that it has on climate generally, there's a healthy business opportunity there as well. I thought we ought to mention that just because everyone is so bemoaning, the money they've lost or whatever, it's also good to think about the longer term and what you're doing. I want to thank Devin Stockless, his presence here at Warehouser. I'd like to say there's always a more market somewhere. I probably try to find it just for you right here. I may have money. I'm Jim Kramer, see you tomorrow as TVC Special Report with Brian Solvin starts now! All opinions expressed by Jim Kramer on this podcast are solely Kramer's opinions and do not reflect the opinions of CNBC, NBC, Universal or their parent company or affiliates, and may have been previously disseminated by Kramer on television, radio, internet or another medium. You should not treat any opinion expressed by Jim Kramer as a specific inducement to make a particular investment or follow a particular strategy, but only as an expression of his opinion. Kramer's opinions are based upon information he considers reliable, but neither CNBC nor its affiliates and/or subsidiaries warrant its completeness or accuracy, and it should not be relied upon as such. To view the full Mad Bunny disclaimer, please visit cnbc.com/madmoneydisclaimer. Want a website with unmatched power speed and control? 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