Jim Cramer: 3 Signs a Market Has Gotten Frothy

Publish date:
Video Duration:

Jim Cramer weighs in on what a frothy market after pondering whether we're in one in one of his recent columns on Real Money

"Well, one is you have to say, okay, why? If the stock's going up on nothing, that's froth. Two is, do we have stocks that are going up regardless of their valuation. And that is certainly where we are. And then three is a situation where you have a stocks reverse. Okay. So you had United Technologies and Raytheon--everybody loves it--and then you realize they just went too far up and it gets pretty ugly very fast," said Cramer. 

More from Cramer: 

Why Jim Cramer Doesn't Think There'll Be a Definitive Trade Deal at G20

Jim Cramer on What to Watch in FAANG

What Jim Cramer Says It Will Take for Beyond Meat Investors to Eat Elsewhere

Exclusive Insight Into Jim Cramer's Charitable Portfolio

Related Videos