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NEW YORK (TheStreet) -- There are still values out there, Jim Cramer told his "Mad Money" TV show viewers Monday after a long, Olympics-sized break. But as the markets head higher there will be fewer and fewer values to be found.
Cramer reminded viewers that the time to champion the markets is not after a huge run, but after a huge decline. Big rallies, he said, are times when investors should be poking holes in the bull case and using increasing levels of caution.
So what keeps Cramer up at night? The bears argue that valuations are stretched, but Cramer argues that at 17 times earnings the markets are still a bargain as profits are robust enough to send earnings estimates higher.The bears also argue the markets are levitating without any facts. But Cramer noted the big uptick in mergers and activist investors would say otherwise. Companies like Comcast (CMCSA), Triquint Semiconductor (TQNT) and Men's Warehouse (MW) would all agree that there are still great values to be had. Yes, there are trouble spots in the market, Cramer admitted, such as the collapse of the retail sector and the continued skepticism surrounding the banks. Autos are also heading south, as is anything that touches China, including mining and minerals. The only thing that really worries Cramer, however, is momentum stocks -- names like Facebook (FB), a stock which Cramer owns for his charitable trust, Action Alerts PLUS, along with Tesla Motors (TSLA) and Netflix (NFLX). These stocks continue to roar higher, he said, but big investors just can't afford to not own them. That's why Cramer said he remains bullish on stocks. They're still the best game in town. But he's decidedly less optimistic than he was just a few weeks ago.