Cramer Ditches Growth Stocks for Treasuries: A New Safe Haven Emerges

Jim Cramer recently made an unexpected comment on his Mad Money broadcast, suggesting that retirees holding growth stocks like Nvidia (NASDAQ:NVDA) and Apple (NASDAQ:AAPL) should reconsider their investments. According to Cramer, these companies' high valuations make them less attractive for older investors, who would be better off with 30-year Treasuries.

The 30-year Treasury constant maturity yield has been increasing, reaching 5.35% on September 11, 2026. This makes it a more competitive option for retirees, who can lock in a stable return for the longest span offered by the government. In contrast, Nvidia and Apple offer high-growth potential but come with significant valuation risks.

Cramer noted that while these tech giants have delivered impressive revenue growth, their valuations are unsustainable in the long term. For example, Nvidia's market cap is around $5.27 trillion, with a trailing P/E of 44 and a beta of 2.217. Apple's market cap is near $4.85 trillion, with a trailing P/E of 43.

The key distinction between bonds and equities is that dividend payments are at the discretion of the board, whereas bond yields are contractual and backed by the U.S. government. While this means that bond holders risk selling early and losing value, equity investors face valuation risks if growth slows down.