TheStreet's founder and Action Alerts PLUS Portfolio Manager Jim Cramer isn't subscribing to theories about a 40% stock market correction.

"Without some sort of Black Swan event, there a lot of companies that will just stand there and buyback stock and take advantage of any sort of decline and sop up a lot of equity," Cramer noted. "Now I'm not saying that it can work as a trampoline - companies are flush with capital and you could see 10-20% of an actual float be bought back."

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