This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

'Mad Money' Recap: Bubble Sightings (Final)

Stocks in this article: CMG HAIN HUN CBOU SBUX ARMH BTU MWW

Search Jim Cramer's Mad Money trading recommendations using our exclusive Mad Money Stock Screener and watch Jim Cramer's Mad Money Post Game video exclusively on TheStreet.com.


NEW YORK ( TheStreet) -- "Stop looking for bubbles where there aren't any bubbles," Jim Cramer told the viewers of his "Mad Money" TV show Thursday. He said that now's the time to tip-toe back into the markets, not run for the exits.

Cramer said it's true that the markets have been up six weeks in a row, but that doesn't mean that investors need to worry about bubbles. He said the definition of a bubble is when investors pile into the markets with reckless abandon, but in truth, the very opposite have been happening for over a decade.

The exodus began after the dot-com collapse in 2001, said Cramer, and continued after the 2008 financial collapse, the flash-crash of 2010 and again during the summer of 2011.

Cramer said he hears the calls of a bubble in tech stocks, but with bellwethers like Intel (INTC) and Microsoft (MSFT) trading at just 10 times earnings, a fraction of what they were just a few years ago, how can that be a bubble?

He said that even Apple (AAPL), a stock which he owns for his charitable trust, Action Alerts PLUS , trades at just seven times earnings after backing out the company's nearly $100 billion in cash.

Some have called a bubble in retail, said Cramer, but Walmart (WMT) still trades below where it did a decade ago. THe same is true with the oil stocks, with companies like Exxon-Mobil (XOM) and Chevron (CVX) both trading at super-low valuations.

Cramer acknowledged there is unbridled excitement about the upcoming Facebook IPO, but said there's nothing wrong for investors to get excited about an IPO. Cramer recalled how he received hate mail after endorsing the Google (GOOG) IPO at $80 a share, only to see that company double and double and double again.

"Maybe, just maybe, stocks are coming back into favor," Cramer concluded. "Would that be so horrible?"

1 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Jim Cramer and Stephanie Link reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

Jim Cramer's protégé, David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
Try it NOW
Try it NOW
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

Jim Cramer's protégé, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!

Markets

DOW 18,030.21 +6.04 0.03%
S&P 500 2,081.88 -0.29 -0.01%
NASDAQ 4,773.4720 +8.0480 0.17%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs