Squawk on the Street Cramer's Morning Take: Home Depot 9/25/25
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Sep 25, 2025 Jim Cramer dives into the implications of rising mortgage rates on Home Depot, warning it could dampen housing-related spending. He stresses the importance of shifting from speculative stocks to solid, profitable companies after parabolic runs. The discussion also highlights the connection between rising Treasury yields and unexpected economic strength, along with concerns about insider selling in hot stocks. Join the CNBC Investing Club for deeper insights and exclusive member content!
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Sell Speculation, Buy Quality
- Do sell speculative positions and buy quality after speculative froth is gone.
- Trim gains when stocks run parabolic to avoid insider selling and bad money entering.
Parabolic Rises Invite Risk
- Parabolic rallies attract insider selling and skepticism that can reverse gains quickly.
- Stocks up 300% draw bad money and become risky short-term despite long-term theses.
Home Depot Is Rate Sensitive
- Strong macro data can push 10-year yields higher and hurt rate-sensitive stocks like Home Depot.
- Home Depot's long-end mortgage exposure makes it vulnerable when rates rise even if short-end HELOCs are healthy.