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Don't assume stock prices are too high, Jim Cramer told his Mad Money viewers Thursday. Listen to what the companies are actually telling you. Then assess what that might mean for the future.

Cramer said it's true that our stock market is being propped up by unprecedented demand for U.S. Treasuries, as investors around the globe make a flight to quality. That in turn sends bond prices up and keeps interest rates artificially low. But so what? Competition is competition and right now the U.S. markets are winning. Cramer said he'll take a win any time he can get it.

But does that mean stocks are overvalued at current levels? Only if you're looking in the rear-view mirror, Cramer said. Alcoa (AA - Get Report) cited strong growth in autos, trucks and aerospace just a few days ago. Couple that with positive comments from railroad CSX (CSX - Get Report) , a strong showing from disk drive maker Seagate Technologies (STX - Get Report) and a big rally in the airline stocks and maybe, just maybe, things aren't quite as bad as many fear.

Stocks aren't prices on what's happened in the past, Cramer concluded. They're priced on future earnings growth. And right now, the companies are telling us things are looking up.

Half Year in Review

In the next installment of his "Half Year in Review" series, Cramer examined how the consumer discretionary and healthcare stocks fared during the first half of 2016.

The consumer discretionary stocks were essentially flat on the half, averaging down just .13%. But don't let that number fool you, Cramer said the results were wide ranging, with department stores falling, while retailers offer value soaring.

Topping the list was Ulta Salon (ULTA - Get Report) , up 37%, followed by Wynn Resorts (WYNN - Get Report) topping 31% on a long-awaited pickup in gambling in Macau. Losers included Royal Carribean Cruises (RCL - Get Report) , down 33% on Zika virus fears, and Signet Jewelers (SIG - Get Report) , also off 33%.

The healthcare cohort suffered a similar fate, off an average of .44% with wide ranging results. HMOs and medical devices performed well, while biotech and drug makers struggled.

Cramer recommended the biggest winners, which included Stryker (SYK - Get Report) , up 29%, Boston Scientific (BSX - Get Report) , up 26%, and Fitbit (FIT - Get Report) , up 24%. He continues to steer clear of the losers, like Endo International (ENDP - Get Report) , the generic drugmaker which fell 74%, and Perrigo (PRGO - Get Report) , the private label drug maker that lost its CEO and plummeted 37%.

Worst Investment Ever

A bad investment is a bad investment, Cramer told viewers, as he called Germany's recent bond offering that included a negative yield, "the worst investment ever!"

Politics aside, Cramer said it's ludicrous that a full 33% of all government bonds around the globe now include negative interest rates. He recalled back in 1984, when he was a young lad anxious to sell stocks, he was forced to compete with 30-year Treasury bonds yielding 13.5%. Yes, you read that right, 13.5%.

Cramer said he was told by his superiors back then to just sell the bonds, which, despite offering no commission, were not only a terrific investment but were also 100% risk free. Those bonds, he learned, were the best investment of all time, no risk and all reward.

That's why today's negative yields, in stark contrast, are the absolute worst investments of all time.

Executive Decision: Don Wood

For his "Executive Decision" segment, Cramer sat down with Don Wood, president and CEO of Federal Realty Investment Trust (FRT - Get Report) , the shopping center real estate investment trust that yields 2.3%.

Wood explained that today's consumer expects and demands a level of service that didn't even exist five years ago. They want not just shopping but to live in a place that's convenient, away from traffic but close to transit, and has all of the amenities including movies, health clubs, spas and services.

Wood said that the term "lifestyle center" has surfaced recently and the term simply means a place that fits the way you want to live.

Federal Realty is ready for this new world, and Wood noted his company has seen a lot of transformations but has still managed to raise its dividend every year since 1967.

Lightning Round

In the Lightning Round, Cramer was bullish on Johnson Controls (JCI - Get Report) , Vodafone Group (VOD) , Nordic American Tanker (NAT - Get Report) , Whole Foods Markets (WFM) and Intuit (INTU - Get Report) .

Cramer was bearish on Rite Aid (RAD - Get Report) , JD.com (JD - Get Report) , Ship Finance International (SFL - Get Report) , Plains All American Pipeline (PAA - Get Report) and H&R Block (HRB - Get Report) .

Am I Diversified?

In the "Am I Diversified?" segment, Cramer spoke with callers and responded to tweets sent via Twitter to @JimCramer to see if investors' portfolios have what it takes for today's markets.

The first portfolio included Gilead Sciences (GILD - Get Report) , Duke Energy (DUK - Get Report) , Corning (GLW - Get Report) , Cisco Systems (CSCO - Get Report) and Annaly Capital (NLY - Get Report) .

Cramer said that Corning and Cisco were too similar and he recommending swapping out of Corning in favor of an industrial like Honeywell (HON - Get Report) .

The second portfolio's top holdings included Verizon (VZ - Get Report) , JPMorgan Chase (JPM - Get Report) , Johnson & Johnson (JNJ - Get Report) , Sony (SNE - Get Report) and Cisco.

Cramer said this portfolio was perfectly diversified.

The third portfolio had Starbucks (SBUX - Get Report) , Costco (COST - Get Report) , Amazon (AMZN - Get Report) , Nike (NKE - Get Report) and Microsoft (MSFT - Get Report) as its top five stocks.

Cramer said Amazon is different enough from Costco to allow this portfolio to be diversified.

To watch replays of Cramer's video segments, visit the Mad Money page on CNBC.

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At the time of publication, Cramer's Action Alerts PLUS had a position in CSCO, COST and SBUX.