Cramer's 'Mad Money' Recap: Misleading Bearish Sentiments (Final)

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NEW YORK (TheStreet) -- "Don't get scared off by the misleading bears," Jim Cramer cautioned the viewers of his "Mad Money" TV show Tuesday as he refuted a recent Wall Street Journal article citing 10 reasons investors should be cautious.

1. The market is really expensive. Cramer said the markets only care about future earnings, not current earnings, and by that metric stocks are valued at just 12 times earnings, making them very inexpensive.

2. The Federal Reserve Is nervous. Cramer said the Fed isn't nervous, it's cautious, and that puts it on the side of the investor. "Never fight the Fed," he reminded viewers.

3. Too many people are bullish. "Nonsense," he said, adding investor sentiment is at record lows, with money flowing out of stocks.

4. Deflation is here. Cramer said with bond yields at just 1.39%, the markets are clearly worried more about inflation than deflation.

5. People still owe too much money. Cramer said this too is nonsense. Corporations are flush with cash and consumer credit card delinquencies are on the decline.

6. Jobs are worse than they're telling you. Cramer agreed that the jobs market is horrible, but argued that this is a known fact, and something already baked into stock prices.

7. Housing remains a disaster. Huh? Cramer said housing prices bottomed a year ago, and 100 out of 150 major markets are showing median home prices on the rise.

8. Labor Day is coming. Worried that the Fall is bad for stocks? Cramer said the markets have been up seven of the past eight Augusts.

9. Gridlock in Washington. While the article said gridlock is bad, Cramer said nothing could be further from the truth. "The market loves gridlock," he said, as evidence by an average 15% gain in years with a split Republican-Democrat Congress.

10. All indicators are flashing. Cramer said the metrics don't matter. He said earnings matter, and by that metric, the markets are doing just fine.

Cramer said he'll never side against taking profits, but these negative articles shouldn't scare investors out of the markets altogether, as they're completely wrong.