Name: The most important thing to remember is the long bond, says Jim Cramer
Uploaded: 2026-09-10T23:55:02+00:00
Duration: 786 s

Speakers

Jim Cramer — Host, Mad Money

Summary

Jim Cramer argues that the 30-year Treasury/long bond is the most important driver of markets, with high yields pressuring stocks, housing, and airlines while offering an attractive risk-free return for older investors. He answers caller questions on Howmet, Micron, and Arista Networks, giving bearish and bullish views respectively. The episode also previews upcoming segments on Lululemon, Seneca Foods, and Sterling Infrastructure.

Cramer says the long bond/30-year Treasury is the principal determinant of asset prices.
Long-bond yields around 5.3% make the 30-year Treasury attractive for investors 50+.
Mortgage rates above 7% are crushing housing and related retail.
Airlines are pressured by high borrowing costs, oil, and long-bond yields.
Cramer is bearish on Howmet due to 44x earnings and a commodity-like business.
Cramer is bullish on Micron, agreeing with a caller's thesis and buying aggressively.
Cramer remains confident in Arista Networks and CEO Jayshree Ullal, buying dips.
Upcoming segments mentioned Lululemon, Seneca Foods, and Sterling Infrastructure.

Ideas

Jim Cramer Host, Mad Money 2:45

Mortgage rates crush housing and related retail.

The 30-year yield is pushing mortgage rates above 7%, crushing new and existing home sales and making housing unaffordable. Housing is 10% of the economy but punches above its weight, so weakness drags on materials, wages, brokers, lawyers, trades, and retailers from RH to Best Buy to Home Depot and Lowe's, as well as Stanley Black & Decker.

Jim Cramer Host, Mad Money 3:33

Buy 30-year Treasury for risk-free yield.

The 30-year Treasury/long bond is the principal determinant of asset prices and is now yielding about 5.3%, offering a historically attractive risk-free return. For investors 50 or older, it is the ultimate sleep-at-night holding and a powerful competitor to stocks; even though inflation could rise and supply issuance is heavy, a 5.3% risk-free return is not bad.

Jim Cramer Host, Mad Money 5:01

Long bond and oil pressure airlines.

Airlines are hostage to the long bond. High 30-year yields mean they must borrow at rates well above the risk-free 5.3% to buy planes, limiting expansion. High oil also cuts into margins, and if employment weakens, travel slows, estimates are cut, and airline stocks get hammered. Airlines are notorious unsafe/fickle investments, so the 30-year Treasury wins over airline common stock.

Jim Cramer Host, Mad Money 7:39

Howmet too expensive at 44x earnings.

Howmet is a fastener company and at most times a commodity-oriented business, yet it sells at 44 times earnings. Even though the business is strong, that multiple is too high for a commodity-like company. Investors are saying it's too much to pay and waiting for a lower price; the chart also looks like it is going lower.

Jim Cramer Host, Mad Money 9:30

Cramer owns and buys Micron.

Cramer agrees with the caller's detailed Micron thesis: forward P/E, PEG, yield, possible dividend increase, and possible $30 billion in buybacks after the December 9 chip expiration. He says the analysis is spot on, that his travel trust owns Micron, and that they are buying it aggressively.

Jim Cramer Host, Mad Money 11:58

Buy Arista dips on CEO confidence.

Cramer's confidence in Arista Networks is tied to CEO Jayshree Ullal, whom he thinks is amazing. He says every time the stock has dipped since her tenure began, investors should buy it, and he is not backing away from that view; the company is fantastic.

The most important thing to remember is the long bond, says Jim Cramer

Summary

Ideas

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