Dow futures are rising Friday and the Nasdaq is down as investors turn to reopening trades with the U.S. coronavirus pandemic recovery accelerating.
In the last episode of Mad Money, Jim Cramer said that every time the market rolls over, investors need to know the do's and don'ts to survive the change and profit.
TheStreet's Katherine Ross and Cramer are talking about SPACs, the fall in oil prices, and advice for young investors.
When to Invest in SPACs
U.S. Securities and Exchange Commission officials are starting to probe the $200 billion market for SPACs, the so-called blank check acquisition companies that have attracted scores of celebrity endorsements while raising questions over the ethics of investing on Wall Street, Reuters reported Thursday.
Cramer said he wanted the SEC to look into SPACs because there are a lot of bucket shops that are doing these deals."You want to see seasoned operators who raise money but also put their own money in, that's a SPAC you want to be in."
Oil Prices Decline
Oil prices in the U.S. declined nearly 5% following a rally sparked by a container ship blocking the Suez Canal and creating a bottleneck that could slow the delivery of more than 13 million barrels of crude through one of the world's busiest waterways.
Cramer said because Saudi Arabia is cutting back oil production, oil prices hang at around $50. "At these prices oil is still going to come to the market. When you have this kind of action about oil, which is that this ship gets stuck and oil goes down. The fulcrum of the situation is this demand for oil, given that the Saudis are artificially keeping the price up, is controlled by Europe which is in big trouble and it's pulling down oil."
A Message to Young Investors
Cramer said young investors need to buy things that are doing well, their stocks down a lot but they are not sexy. "It's important to recognize that these are just pieces of paper they aren't going to love you back, it's unrequited. I want people to understand it's not just diversification, they need to buy stocks for reasons other than just -- it's going up.