Although housing stocks have been "booming," the media's been reporting that people should not be buying these stocks, Jim Cramer said on his
"RealMoney" radio show Friday.
But Cramer wonders if these reporters, who have kept people out of this "fabulous" rally, have even taken a look at these stocks. There may be lots of for-sale signs and "anecdotal evidence" that people have not been able to sell their houses, but this doesn't mean that the homebuilding stocks are bad, he said.
The media might also be bearish on this group because it believes that these stocks are overvalued compared with their fundamentals, Cramer continued.
, which he owns for his charitable trust,
Action Alerts PLUS, was considered as such, as was
. But this is not true, Cramer said.
In fact the homebuilders have bottomed because they were undervalued, he said. Although these stocks are not as undervalued anymore, Cramer said it's time to buy them.
With all the activity surrounding major companies and private-equity funds, people might believe there is something cooking in this area, he said. However, "the bubble in private equity isn't really a bubble yet."
Although there have been many deals, "a plethora of deals isn't a bubble," Cramer explained. "A plethora of deals at high interest rates is, and the rates at which these deals are occurring are so low that they most likely can work -- as the
Moreover, "the fact that Hertz was able to pay a dividend to the firm that bought it and come public, says it is way too early to fret," he added.
Cramer told listeners to first look at the performances of stocks with "OK fundamentals and under-levered balance sheets," and to worry about whether investors are in the wrong stocks when rates go high.
"Until then, if you miss out, you're leaving too much money on the table," he said.
To see the most recent edition of The RealMoney Radio Recap in its entirety, please click here. This recap is published every day around 3 p.m. ET.
At the time of publication, Cramer was long Sears Holdings.
Jim Cramer is a director and co-founder of TheStreet.com. He contributes daily market commentary for TheStreet.com's sites and serves as an adviser to the company's CEO. Outside contributing columnists for TheStreet.com and RealMoney.com, including Cramer, may, from time to time, write about stocks in which they have a position. In such cases, appropriate disclosure is made. To see his personal portfolio and find out what trades Cramer will make before he makes them, sign up for
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