The Nasdaq Ballooned $1 Trillion Since Jim Cramer Called It ‘Overvalued’

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Jim Cramer conceded last summer that tech stocks were overvalued but did not ask the Nasdaq bubble. And now, Jim? | Picture: AP Photo / The Columbus Dispatch, Courtney Hergesheimer

  • Well this age awkwardly. Last July, Jim Cramer admitted tech stocks "have some outrageous valuations," but "we have not gone crazy."
  • During the next seven months, the Nasdaq rose 18% - more than one trillion dollars. But Jim Cramer remains cautiously optimistic today.
  • And most companies companies fear wrenching recession ahead. Just as it has gone mad, Cramer?

    In the CNBC "Mad Money" last July, Jim Cramer had no patience for the pessimists analysts. It was full of open contempt for concern that the Nasdaq Composite had become superheated:

    After a great career that you always hear that there are too many bulls. Too much excitement. Too much optimism. We have been a false sense of security ... What exactly are we too optimistic about?

    However, Cramer acknowledged technology stocks had "some extravagant ratings" at the time.

    However, the final analysis was as follows:

    However, it is not that we have become crazy.

    He even said that people were quite skeptical about the stock market at the time:

    While there are some overvalued stocks in general I think people are pretty skeptical ... Feel free to pull in their horns because you think there is much enthusiasm. I'm not seeing it.

    Cramer was definitely wrong.

    He said this makes $ 1 trillion in just seven months.

    Jim Cramer remains bullish

    The day Cramer said "is not that we have become crazy," Nasdaq Composite closed at 8109.09. Friday just close at 9572.15. That's an increase of 18% in seven months, and more than $ 1 zillion more equity valuations of the Nasdaq.

    However, yet has gone mad yet. Not crazy world of Cramer. Jim Cramer is bullish for 2020, for the simple reason that Donald Trump is chairman:

    Hate Trump or like him, and believe me, people know my politics, but hate him or like him who has created an environment which is very good for business and the bigger your get advantage over the market values ​​go up.

    Even if we concede that the president has been superlativa for businesses that still there is a strict limit on what actions are actually worth. And that's the value of their future earnings discounted to the present. As Warren Buffet explains:

    The absolute majority owners of a company together can leave it at the end between now and the Day of Judgment, is what wins business over time.

    is the Nasdaq bubble in a crazy now? On July 2, 2019 Jim Cramer said he had some technology stocks "overvalued" but "we have not gone crazy." And now? | Graphic: TradingView

    Michael O'Rourke, chief market strategist at the brokerage JonesTrading says that the US Federal Reserve It is fueling the Nasdaq bubble with easy money policy:

    Whenever there has been a decline in the market, the Federal Reserve has stepped in to relieve. Investors have been trained Pavlovian way not to assess risk and buy every dive you get.

    This is beginning to resemble 2007, as Bloomberg pointed ominously at the end of January:

    In the current situation, stocks of the Nasdaq rises in the highest valuation forward since 2007.

    What's worse for the Nasdaq, is really starting to look like the dot com 2000, according to Forbes recently warned:

    Growth stocks, which are dominated by technology companies and health, often have excellent earnings momentum to justify a margin of overvaluation. But when stocks approach 30 times earnings, approaching the level of nosebleed reached in early 2000.

    Amazon (NASDAQ: AMZN) (!). Price to earnings ratio is 90

    Netflix: (!). (NASDAQ NFLX) price to earnings ratio is 88

    one hundred ninety-seven of CFOs believe that we have entered a recession or will do so this year.

    Hello, Cramer - Have we gone mad yet

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