Mad Money w/ Jim Cramer Mad Money w/ Jim Cramer 12/26/25
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Dec 27, 2025 Jim Cramer dives into the intricacies of Wall Street, unraveling the jargon that often confuses investors. He explores the distinction between cyclical and secular stocks, offering insights on when to favor each type based on economic climate. Cramer addresses listener questions on topics like asset allocation and the benefits of 529 plans. He highlights the importance of understanding P/E multiples and warns against the risk of value traps. With practical advice on portfolio management, he guides investors to make informed, effective decisions.
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Cyclical Vs Secular Growth
- Cyclical companies depend on the business cycle and thrive in booms but suffer in recessions.
- Secular companies deliver steady earnings regardless of economic swings and act as recession hedges.
Use Higher Equity And Stagger New Funds
- Increase equity allocation when you expect long life and low bond returns; Cramer suggests up to 70% stocks for older investors.
- Dollar-cost new windfalls monthly over a year and deploy more if markets drop sharply.
Multiple Is The Valuation Driver
- The P/E multiple equals price divided by earnings and shows how much investors pay for earnings.
- Multiples change with market conditions and drive valuations more than share price alone.