Jim Cramer's 3 Ways to Know When to Buy a Stock

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Jim Cramer has some advice for investors. 

He's been saying that the markets all-time highs are causing the market to be up too much.

In fact, in his morning column over on Real Money, Cramer noted, "We should never have gone this high."

"It is reminiscent of the heights we reached before the Super Bowl in 2018 when inflation came in too high after the February employment number and the whole complex of VIX short-sellers, those who bet that VIX would stay calm no matter what got their heads handed to them. They needed to unwind their positions, which included selling the S&P 500 futures and crushed the market -- which was easy to do, like now, with stock way past where they should be at this stage," wrote Cramer.

So, let's take a look at Cramer's three ways to know when it's time to buy a stock. 

First of All

It's gotta be softened, says Cramer. 

"There's gotta be a belief that it's already come down," said Cramer. 

Then...

"It's got to have a secular theme," said Cramer. 

He notes that the 5G theme is really working. 

And Finally...

Rates have to come down, he said. 

"Rates have to come down in order to win," said Cramer.

"The only way to beat the market is to actually examine companies, Most people are bored by examining companies," he noted. 

 Watch the full video above for more. 

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