Meme stocks like Wendy's (WEN) - Get Report and GameStop (GME) - Get Report have taken the markets on a wild ride and TheStreet.com Founder Jim Cramer sees a parallel between the current volatility and horse racing.
Cramer discussed the current Reddit-crowd frenzy with Action Alerts PLUS senior analyst Jeff Marks.
Wendy's: Buy or Sell?
"People are having fun," Cramer said. "Now, I favor education, so when you have too much fun, things can go wrong."
Cramer said he had taken a handicap course at Harvard and he used to go to Suffolk Downs "pretty much every day and I just had to pick the one race I liked."
"Is this different from the ponies?" he asked. "I come back and say, 'hey, what’s the matter with the ponies?' I don’t back and say 'yeah, it’s like the ponies.' You do the ponies right, you make money ... you do this right, you make money. But you maybe have to take a little bit of a course. You have to understand that you may be riding the wrong pony."
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Cramer noted that he has "always said that there's a component of fantasy," and referred to Bull Market Fantasy, "where we merge stocks and jocks and I accept it."
"You can say, 'that's outrageous, Jim, you're endorsing it,'" Cramer continued. "But I'm saying the opposite. If you going to do it, do it wisely."
He added that he writes about how to speculate wisely every day in RealMoney and "how to invest wisely is what we do every day at Action Alerts."
"We do not do any of this," he said, "but I want you to invest wisely."
Regarding Wendy's going too far, Cramer said, "well, I would tell you that if you hold it, I think it will go up a lot."
GameStop: Buy or Sell?
Cramer turned his attention to GameStop, which on Wednesday posted a narrower-than-expected first-quarter loss.
"You need to invest wisely," he said. "To me, GameStop has been great, so you need to take a little off the table. But the people who are riding these ponies like GameStop; they hate to hear that because it might break the short."
"You need everybody buying in order to keep the short going," Cramer said.