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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.
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.
Executive Decision: Michael Kneeland
For his "Executive Decision" segment, Cramer sat down with Michael Kneeland, president and CEO of United Rentals (URI), a company that rents nearly 400,000 pieces of equipment to industries across America. Shares of United Rentals are up a solid 51% since Cramer last checked in back in mid-October.
Kneeland is very bullish on his company's outlook and the outlook for the American economy. He said there are plenty of ways for United Rentals to expand because residential and nonresidential construction are picking up along with oil and gas providing our economy with a new growth engine.
Kneeland said United Rentals' customers seem to agree, with 98% of core customers saying they expect next year to be better than last year.