Is now the time to own treasuries? Jim Cramer said no. With interest rates on treasuries so low, Jim Cramer says it is better to invest elsewhere. "The ownership of Treasuries is punitive. It really is burning a hole in your pocket at this point," Jim Cramer said.
While he said those invested in five-year treasuries will get their money back, there are better plays, such as a stock like Western Gas (WES). "That's a very low risk, high reward stock," Cramer said.
The only reason to own treasuries, he said, would be if the relations between United States and Iran escalate toward war. Cramer prefers dividend stocks, which he says offer a better rate of return. "Even the most cyclical, not secular growth stories offer a better return than treasuries. Of course that stocks can go down and I know I can be mocked for saying that but I am just making a point," Cramer said. "I don't trust treasuries. I think that as even trying to invest cash for TheStreet, it has just been a nightmare."
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV