British Prime Minister Theresa May is expected to make a final attempt at persuading lawmakers to back her "new" Brexit deal on Wednesday but the agreement — and May's...Europe Politicsread more
Consumers in China are taking to social media to express their support for Huawei as the U.S. government looks to ramp up pressure on the Chinese smartphone maker.Technologyread more
Tensions between the two parties have heightened in recent months as the campaign for seats in the Brussels and Strasbourg-based parliament has crescendoed.Europe Politicsread more
Shares of Saudi shopping mall operator Arabian Centres were trading at 24.34 riyals ($6.49) in early deals in Riyadh.IPOsread more
There is at least one thing in common between the U.S. and Russia – their willingness to weaken the European Union, a top EU official said.Politicsread more
U.S. President Donald Trump's latest tariff increase — and Beijing's plans to counter them — are hitting U.S. companies in China, according to a joint survey this month by...China Economyread more
"We are also constantly watching whether the trade war will turn into a tech war," Ma said Tuesday, according to a CNBC translation of his Chinese remarks published by a locak...China Economyread more
TransferWise, the money transfer start-up, was valued at $3.5 billion after investors bought $292 million of shares in a secondary sale.Technologyread more
Indian Prime Minister Narendra Modi's likely return to power for a second term will likely be positive for his country's growth, according to economists and investors.Asia Economyread more
Kohl's, J.C. Penney and Nordstrom release disappointing earnings news, putting a damper on their sector.Retailread more
"Pretty much the entire suite of apps that 'talk' over the internet could be vulnerable," said Tom Uren, a senior analyst at the Australian Strategic Policy Institute's...Cybersecurityread more
Jim Cramer thinks a significant shift is underway all across the nation and it threatens to upend a fundamental pillar of investing.
That is, interest rates continue to languish even though the economy appears to be improving. "The yield on the 10-year Treasury has slipped all the way back to 2.5 percent, " Cramer noted.
Conventional wisdom suggests that shouldn't be possible.
"In the 35 years I've been trading on Wall Street, this kind of environment (improved , etc.) has always been met with rising interest rates, " Cramer said.
That's not happening. Demand for safe-haven U.S. Treasurys remains significantly robust. "As a result, the prevailing wisdom is that bonds yields are telegraphing some kind of looming crisis; that yields are so low that a recession has to be around the corner. "
"I think that view is wrong," Cramer said.
Although there's more than a single catalyst behind the strength in bonds, Cramer believes, more than anything else, the unwavering demand for U.S. bonds is all about our national psyche.
After reading the new book "Stress Test: Reflections on Financial Crises " by former Treasury Secretary Tim Geithner, Cramer has come to believe the national psyche changed, permanently, during the financial crisis.
"I think America's gone frugal," Cramer said.
It's happened before.
"Just like our parents, or grandparents, or even great-grandparents changed their patterns of behavior somewhat radically after the Great Depression, I'm thinking we've changed ours, too," Cramer said.
That is, Cramer said, people grew so fearful of losing their jobs, their homes, and their way of life during the financial crisis that they changed the way in which they view money, particularly debt.
"Borrowing is way down in America. Home buying is way, way down, back to levels that are shocking given the vast size of our country," he said. "People aren't having kids the way they used to, perhaps because they can't afford them."
If you agree that the nation has embraced a new level of frugality, Cramer said, extend the view to the bond market. That is, rather than view demand for Treasurys and the accompanying decline in yield as a sign of impending troubles, Cramer said it should be viewed a sign of new frugality—it's the new normal.
Read more from Mad Money with Jim Cramer
Weakness in Nasdaq red flag for S&P?
Cramer: Is market reward still worth the risk?
Why Amazon selling could intensify
In the past, an improving economy and rising rates went hand in hand, but not anymore. Cramer said that kind of conventional wisdom has been turned on its ear by the financial crisis.
"Therefore I just can't believe these declining interest rates actually mean that we're going to have an economic collapse," Cramer said. "I'd take advantage of the discounts you're getting in stocks created by those who are leaving the market because they fear another recession. I think it's a false worry that won't make you a dime and will cost you some terrific opportunities. The new frugality is a terrible thing to waste."