Cramer's Morning Take: 9/26/23

SPEAKER_1 (0:00)

What's on the horizon for financial markets?

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Jim Cramer (0:28)

I'm Jim Cramer, and you're about to hear a sample taken directly from today's CNBC Investing Club morning meeting. When I see it this negative, I look for things to buy, not to sell.

Maybe we'll come in, we're minus three and a half, maybe we'll come in tomorrow minus five. I don't like to anticipate the oscillator, but I look at things and say, all right, does anybody positive at all? Yes, treasury yields made a big move yesterday. Oil still will change, it's not spiking.

Let's look for things to buy, and that's exactly what we're doing. We have cash, you put the cash to work.

Jeff Marks (1:04)

Yeah, we're looking for things to buy. It's important to note today, giving back all of yesterday's gains. Yesterday, we had a down open. You did have some buyers, maybe at least some short covering quickly happened shortly after. So, but we're giving that all back today. Rates remain the big focus. He had Jamie Dimon today talking about his concern about 7% rates. He was on your show talking about 6% rates.

Jim Cramer (1:27)

So obviously, I would argue that's not so bad given the fact that the Fed has moved dramatically since then. But I think we have to just accept the fact when you see Apple down, Amazon down, Alphabet down, Microsoft down, or nothing.

That's just the bond speaking. Right. And that's what we're up against.

Jeff Marks (1:46)

And I think it's important to point out what's happening. Why do those stocks go down when rates rise? Well, high multiple stocks tend to get hit because the discount rate on those out-year earnings, long-duration equities, they're often called, that comes back at a lower price. So that's why they go down. You also see weakness in utilities, a lot of the bond equivalents, because if you can get, you know, five and change short-term, four and a half on a ten-year, it makes a consumer stable, it makes a utility look less appealing.

Jim Cramer (2:18)

Right, but I would come back and say, there have been many times in my career where you've had a ten-year at these prices and you'd say, okay, that's a decent return, but you know what?

I'd like to earn more than that, particularly because I think the Fed's about to finish its tightening cycle. You get an average of 13% gain when you're finished the tightening cycle. And is anyone thinking the tightening cycle is gonna go up a full percent? I mean, Jamie talked about six, seven, but when you actually talk to the, when you look at the dot plot, you don't have anyone there.

We saw new home sales, they actually went down, which I regard as positive, given the fact that the Fed can impact that. We know that auto sales will go down, not just because of the strike, but because of where rates are. We know that there's beginning to get some interesting patterns and defaults with retailers. What I'm saying is, is that the consumer seems done. They're out of money.

Jeff Marks (3:13)

Well, I know with student loans coming back too, payments for those, that's another headwind there.

Jim Cramer (3:19)

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SPEAKER_4 (3:34)

All opinions expressed by Jim Cramer on this podcast and in connection with the CNBC Investing Club are solely Cramer'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 Cramer on television, radio, internet, or another medium. No specific outcome or profit is guaranteed in connection with your reliance upon or other use of the content from Cramer. The opinions offered in connection with this podcast and the CNBC Investing Club are not an attempt to induce any particular trading behavior, investment, or strategy. You should be aware of the risk of loss in following any strategy or investment discussed in the content from Cramer. To view the full CNBC Investing Club disclaimer, please visit cnbc.com forward slash investing club disclaimer.

Who's up for Bora Bora?

SPEAKER_5 (4:20)

You know I want to, but I'd have to dip into my emergency fund, and you know how it goes.

Jeff Marks (4:26)