Resist the Siren Call of 'Bargains'

Tempting, tempting, I know. Citigroup (C - commentary - Cramer's Take) reports a magnificent quarter. Got to buy that one, no? How low can Bank of America (BAC - commentary - Cramer's Take) go? And how about those REITS? Had a guest on "Kudlow & Cramer" last night, Stephanie Krewdson from BB&T, a real tough one, saying "First Industrial Realty (FR - commentary - Cramer's Take) has to be bought, 8% yield, so what if it gets clocked a little more? The damage is in." Now Gary Balter, one of my very favorite retail analysts, says "Forget the rates, forget the inflation. We've got a couple of great stocks to buy here, stocks that have done nothing."

These are the sirens of myth. I have heard them before. They are the sirens who make me want to lash myself to the mast like Odysseus. I have earplugs. I don't want to know the skinny. I don't want to hear how cheap things are. I have seen this movie too often and while I know that things could bounce, I also know these sirens will wash me right into the rocks, just crush me, the moment I buy them.

Oh sure, everything's cheap. Oh sure, you can venture in. But I have to tell you, it's tough enough right now with the cheap, solid stocks that work, that fit, that make sense; I don't know why I need to take advantage of all of these other bargains that everyone's telling me about. I can find plenty of stocks that fit my patterns that are every bit as inexpensive as the stocks that these folks are discussing, and I still can't make money.

What's that tell you?

To me, this market has become quite treacherous. Lots of good people are in to me every minute, asking, "Jim, what's really wrong with this stock or that stock?" and we all know that the problem is rising interest rates. The last thing I need is to buy stocks that could produce number cuts from rising interest rates.

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James J. Cramer is a director and co-founder of TheStreet.com. He contributes daily market commentary for TheStreet.com's sites and serves as an adviser to the company's CEO. Outside contributing columnists for TheStreet.com and RealMoney.com, including Cramer, may, from time to time, write about stocks in which they have a position. In such cases, appropriate disclosure is made. To see his personal portfolio and find out what trades Cramer will make before he makes them, sign up for Action Alerts PLUS by clicking here. While he cannot provide personalized investment advice or recommendations, he invites you to send comments on his column to [e-mail]. Listen to Cramer's RealMoney Radio show on your computer; just click here. Click here to buy Cramer's latest book, "You Got Screwed!" Click here to order Cramer's autobiography, "Confessions of a Street Addict."