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
EXCLUSIVE OFFER: Jim Cramer's Protégé, Dave Peltier, only buys Stock Under $10 that he thinks could potentially double or triple in the next 6 to 12-months. See what he's trading today with a 14-day FREE pass.

Cramer: Ease Off the Bubble-Calling

Editor's Note: This article was originally published at 7:00 a.m. EDT on Real Money on June 4. To see Jim Cramer's latest commentary as it's published, sign up for a free trial of Real Money.

NEW YORK ( TheStreet) -- There's something about bubble-calling that's irresistible to grown-up pundits in search of getting their names around. They are always calling "bubble!" It's the bubble in junk credit; the bubble in housing; the bubble in Treasuries; the bubble in higher-yield stocks. It never stops. This is yet another kind of binary thinking, like the not-lamented-at-all passing of "risk-on/risk-off."

I totally understand the desire of someone who has something to sell, or of someone who wants to create a big name for themselves, to call a bubble. What could be better than calling a bubble in housing after a 10% increase in the price of a home? Think about how wise that is. If the bubble "bursts," and suddenly housing prices come crashing down, you are a genius! If housing goes up in price, that might be even better, because then it's an even bigger bubble. How much smarter can you sound?

More important, what do you have to lose? Is someone going to call you out on Twitter for being too bearish? Every now and then that happens. For instance, I had been saying that Tesla's (TSLA) too hard to evaluate because it is a cult stock -- and then someone on Twitter said I'd kept him out of Tesla. But that's become more and more the way of Twitter, which has developed into one of those Man Who Shot Liberty Valance things where someone only feels big if they can throw you off his game -- if they can take you down.

Bubble-calling is just the cheapest way of getting known -- and if the bubble "bursts," hallelujah.

Me? I think things are different. Instead of seeing bubbles, I think sometimes things get too high. Take Hershey (HSY). Take Coca-Cola (KO). The latter is one of the greatest companies in the world: consistent cash flow, a decent dividend and a terrific record of raising it. But shares trade at 2.3x Coca-Cola's growth rate, something that's just too expensive for me to recommend, no matter how good the company is.

Does that mean there is a bubble in Coca-Cola? How about we just say it has gotten too expensive?

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

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
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

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
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, 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
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

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

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
DOW 17,071.22 -41.93 -0.24%
S&P 500 1,977.80 -5.05 -0.25%
NASDAQ 4,505.8520 -6.3420 -0.14%

Our Tweets

Brokerage Partners

Top Rated Stocks Top Rated Funds Top Rated ETFs