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TheStreet.com TV Recap: Welcome Back to 1985

Cramer says the number of buyouts taking place is reminiscent of that time.

Jim Cramer sees a rerun of the year 1985 shaping up, which was an amazing time for the stock market as companies became billion-dollar businesses, he said on TheStreet.com TV's Wall Street Confidential

Web video Wednesday.

"I see that we are going to repeat the 1985 scenario," he told Colin Barr, companies editor at

TheStreet.com

and host of Wall Street Confidential.

Every day that Cramer went to work at

Goldman Sachs

in 1985 was another day people said it couldn't continue, he said. "We are seeing that again now," Cramer said.

While some of it is because of float (the number of shares oustanding that are available for trading by the public) shrinkage, another part of it is "because the equivalent of the takeover period of 1985, where if you didn't grow, someone bought you, is occurring now with private equity," he explained.

The year 1985 saw a continuation of a period in which interest rates went from 17% all the way down historically to where they are now, he said.

"That was the beginning of the great financial run," Cramer said. "I would tell you, don't get sidetracked by the blip up in interest rates, because it is just a blip."

There is some debate on

RealMoney.com

that the

S&P 500

is overvalued here on a multiple (price-to-earnings ratio) basis, he continued. "I would point out that what matters to investors is when you get days like today when the market gets soggy at a given point, you shouldn't give up," Cramer said. "What you should do is go for stocks that are getting revalued."

For instance, there are many who believe

Deere

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(DE) - Get Deere & Company Report

is "rolling over," he said. "I say good, better opportunity to buy."

Also, Cramer said that unlike most people, he is not "freaking out" that

NYSE Euronext

(NYX)

, a stock he owns for his charitable trust,

Action Alerts PLUS, keeps going down. "I'm not fed up," he said. "I believe that the franchise is worth a lot of money."

Cramer said it was widely discussed in February that the market's decline then was because of the undoing of the yen carry trade (in which yen is borrowed at lower interest rates and invested elsewhere in higher-yielding investments). But "of course the yen carry trade doesn't get undone at these rates," he said. "That was another canard that people put out."

People are always trying to find a reason for a decline in the market. But instead of backing out of stocks and waiting for some huge crash to occur, investors should want to buy when they see something down 5%, Cramer stressed.

At the time of publication, Cramer was long NYSE Euronext.

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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here to order his book, "Real Money: Sane Investing in an Insane World," click

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here to order Cramer's autobiography, "Confessions of a Street Addict." While he cannot provide personalized investment advice or recommendations, he invites you to send comments on his column by

clicking here.

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