The market often makes mistakes, Jim Cramer reminded his Mad Money viewers Thursday. That means investors need to be wary of the endless rationalizations after big market declines.
It's a mistake to assume the market is right, as it often makes wild generalizations when things happen. Money managers often don't even know what they own, as they're only buying and selling ETFs.
Case in point: Salesforce.com (CRM) , a stock that climbed from $92 in September to a high of $108 a share before plunging back below $100 during the market's latest rotation. Salesforce remains a fast-growing company, Cramer noted, which means the rotational weakness was always going to be temporary, despite the chatter that something must be amiss at the company.
The same applies to Facebook (FB) , Amazon (AMZN) and Netflix (NFLX) , which fell $11, $62 and $15 a share respectively during the rotation, only to begin their recoveries this week. Similar patterns can be seen in Apple (AAPL) , an Action Alerts PLUS holding, and even in Home Depot (HD) .
All of these are terrific companies that didn't deserve to trade as low as they did, Cramer concluded, which is why you cannot trust the market.
Cramer and the AAP team, in their monthly members call, talk about their core names for 2018, including Apple, DowDuPont (DWDP) , Facebook, Schlumberger (SLB) and more. Find out what they're telling their investment club members and get in on the conversation with a free trial subscription to Action Alerts PLUS.
Bulls make money, bears make money, but pigs get slaughtered, Cramer reminded his viewers. So if you've made money in bitcoin, congratulations, but don't expect the party to last forever.
There are several exchanges lining to up begin offering derivatives based on bitcoin, and when that happens, a top in the market won't be far behind.
Despite being called a currency, bitcoin is in fact more like a casino game, one where there don't appear to be any losers. There isn't a lot you can do with bitcoin, and the "currency" offers no transparency, no underlying assets, and no one even knows who created it or if there are any hidden coins that person is keeping for themselves.
At the end of the day, bitcoin is just software, Cramer reminded viewers, and all software will be hacked eventually. When that happens, there will be no insurance and no one you can blame but yourself.
Over on Real Money, Cramer says bitcoin's Wild West days may soon be over. Get more on his insights with a free trial subscription to Real Money.
Executive Decision: Boeing
For his "Executive Decision" segment, Cramer sat down for a talk with Dennis Muilenburg, chairman, president and CEO of Boeing Co. (BA) .
Muilenburg started off by saying that the nature of the aerospace business has fundamentally changed, and there's traffic growth all around the globe with millions more people traveling than in years past. In Asia alone, 100 million people will fly for the first time this year, he said, and Boeing will make 750 new commercial planes this year to help meet that demand.
Boeing has more than 5,700 planes in its backlog, representing half a trillion dollars, or seven years' worth, if you include the company's defense business.
Muilenburg was bullish on President Trump and on tax reforms, saying that tax cuts will unleash a ton of economic energy and Boeing can't wait to use the savings to further innovation.
Cramer asked about our chances of going to Mars during our lifetime. Muilenburg said that Boeing's next-generation rocket, which towers 36 stories tall, is being assembled and will see test flights in 2019. The first person that lands on Mars will get there on a Boeing rocket, he said.
Boeing has a long history of doing big, complex projects that change the world, and that will include vehicles for trips to the International Space Station, the moon and eventually all the way to Mars. That's part of the reason why the Boeing plans to invest $6 billion in research and development next year.
Boeing is also expanding its services footprint. Muilenburg said services were $15 billion this year but will be growing to $50 billion in the coming years.
Lightning RoundIn the Lightning Round, Cramer was bullish on Gentex ( GNTX) , MasTec ( MTZ) , Atmos Energy ( ATO) and Cisco Systems ( CSCO) .
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.
Cramer blessed this portfolio as properly diversified.
Cramer said this portfolio was also well played.
Search Jim Cramer's "Mad Money" trading recommendations using our exclusive "Mad Money" Stock Screener.
To watch replays of Cramer's video segments, visit the Mad Money page on CNBC.
To sign up for Jim Cramer's free Booyah! newsletter with all of his latest articles and videos please click here.