The combined business would be owned 50/50 between shareholders of FCA and Groupe Renault.Autosread more
As trade talks between the U.S. and China increasingly center on Chinese treatment of foreign companies, Beijing says major American complaints about structural aspects of its...China Economyread more
Trump calls the US trade imbalance with Japan "unbelievably large."Politicsread more
Some House members want to lift the cap on state and local tax deductions, but it could be tough, in part because the move is expected to benefit high earners.Politicsread more
Smartphone users in Singapore, the U.K. and China told CNBC's "Beyond The Valley" that foldable smartphones are "very strange," "super bulky," and expensive compared to the...Technologyread more
Measles infected almost every American child until the vaccine eliminated the disease from the US. Now some parents are refusing to vaccinate their children, threatening to...Health and Scienceread more
Economic activity in the U.S. is "quite strong" while China has managed to stabilize its economy, said Tan Min Lan, Asia-Pacific head of chief investment office at UBS Global...World Economyread more
The U.S. is showing signs of targeting China's domestic surveillance and the tech supporting it.Technologyread more
A Beijing decision to rapidly and sharply cut its excessive and unsustainable trade surplus with the U.S. would change for the better the bilateral relationship, writes...World Economyread more
Plant-based protein makers Beyond Meat and Impossible Foods may be taking the food industry by storm, but there's no guarantee their products are healthier than the real...Fast Moneyread more
If you value reliability and quality over a posh cabin and jealous looks, the Lexus LX 570 two-row is the Japanese Range Rover you need.Autosread more
Declines in the market are not always as they appear. And if you don't understand what's actually happening, Jim Cramer fears you could stumble badly.
The declines would suggest that Time Warner and CBS have encountered some kind of business-related headwind.
"I've been asking everyone, is Time Warner going down because it was supposed to get a bigger dividend from Time Inc? Is CBS getting hit because ? "
However, after digging down in the market, Cramer thinks the declines are about something else altogether; hedge fund redemptions.
"Recently, a $7 billion hedge fund I have never even heard of, said it was going to return $2 billion to investors because of the volatility among its holdings. To me that's code for our positions went against us and we've been laid to waste, However, peel back the onion and you'll find CBS and Time Warner are the firm's first and third largest positions, " Cramer said.
In other words, although you might be inclined to think bad fundamentals were driving the price action in Time Warner and CBS, instead, declines were due to niche issue involving a hedge fund.
Cramer says the same kind of distorted relationship is driving shares of newly IPO'd companies lower, despite the promise of future revenues.
"When a company comes public not every share is free to trade. , typically for six months, " Cramer said. As those shares come onto the market, they push down the stock's selling price, simply due to the laws of supply and demand.
"That's just the way it works," Cramer said. "Stocks are just like merchandise, no different from sweaters or coats or toilet paper. Merchants can charge more for any of those items when there is a scarcity. They have to discount when there's a plethora."
However, if you weren't aware of the lock-up phenomenon you may be inclined to think weakness was a reflection of the new company's business prospects. In this case it isn't.
Cramer feels the same distorted relationship phenomenon is at play in the bond market with prices rising and yields falling.
The knee-jerk reaction would suggest the lower rates are investors parking money in safe-haven Treasurys ahead of an expected slowdown.
However, dig down in the market and Cramer says you'll find "money coming from Russia. It suggests to me that money is going into Treasurys because of , " Cramer said, not the global economy.
Read more from Mad Money with Jim Cramer
Cramer goes behind Nasdaq sellof
Cramer's cheap $1000 stock
Insider insights: Cramer goes behind the solar story
What's the bottom line?
All told, you may be inclined to think 1) weakness in CBS and Time Warner along with 2) declines in some newly IPO'd companies and 3) a flood of money going into bonds adds up to something rather ominous.
"The casual observer would conclude economic softness," Cramer said. "It would stand to reason."
But dig down into the market and you may conclude, as Cramer concludes, that economic softness has nothing to do with developments. "If you don't understand what's happening, these distorted relationships could easily lead you to the wrong conclusion."
Call Cramer: 1-800-743-CNBC
Questions for Cramer? firstname.lastname@example.org
Questions, comments, suggestions for the "Mad Money" website? email@example.com