Video: Jim Cramer on Worries of a 40% Stock Market Correction

TheStreet's founder and Action Alerts PLUS Portfolio Manager Jim Cramer isn't subscribing to theories about a 40% stock market correction.

"Without some sort of Black Swan event, there a lot of companies that will just stand there and buyback stock and take advantage of any sort of decline and sop up a lot of equity," Cramer noted. "Now I'm not saying that it can work as a trampoline - companies are flush with capital and you could see 10-20% of an actual float be bought back."

Want more exclusive investing insight from Jim Cramer? Get 24/7 access to Jim's charitable trust portfolio with a free trial to Action Alerts PLUS!

Watch all of Jim Cramer's full NYSE live shows right here: