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NEW YORK (TheStreet) -- The markets are a healthier place today, even though most investors lost money, Jim Cramer said on "Mad Money" Tuesday after a down day on Wall Street. Cramer said the markets saw weakness in the industrials, oils, autos and the banks, but that doesn't mean there isn't a silver lining.
For weeks, Cramer has been preaching the notion of "froth," stocks and sectors that have been going up too far too fast on hopes, dreams and speculation that have nothing to do with any traditional valuation metrics. A little froth is OK, said Cramer, but in the case of the clean energy stocks, these names just kept rising sharply, day after day, on absolutely no news.
That's why it was refreshing to see names such as Plug Power (PLUG) drop 41%, with Ballard Power Systems (BLPD) and FuelCell Energy (FCEL) also down sharply, Cramer continued. Tuesday's decline was rough for those who owned shares in these names, but it's just what the market needed to reset to normal levels.The same can be said for Fannie Mae (FNMA) and Freddie Mac (FMCC), which also suffer big losses on the day. Then there's Tesla Motors (TSLA), the cult stock that was soaring on the hopes and dreams of what the company might be become, far from where it actually is today. "Hope should never be part of the equation," Cramer reminded viewers. That's why, despite the losses, the market is healthier today than it was yesterday, Cramer concluded.