Jim Cramer, the boisterous TV host of CNBC’s circus-like investment show, “Mad Money,” rarely bad-mouths the stock market. You can count the number of times he has expressed concern about irrational investor exuberance on one hand.

Today, however, Mr. Cramer described the existing environment as the “the most speculative market” he’s ever seen. He even likened the circumstances to a “slot machine” that always pays out.

Indeed, there are few profit-takers. And even fewer short-sellers.

Equally disconcerting? The investment community is paying a ludicrous premium above fair value.

How crazy? Never-before seen, 100% historical percentile, crazy.

It is certainly reasonable to believe that widespread vaccination will propel the economy forward. On the flip side, millions of job losses have become permanent.

And households are more dependent on federal government assistance than ever before.

Granted, there are no rules when it comes to stock bubbles. And hyper-speculation alone is unlikely to derail a crazy stock train.

Nevertheless, the probability of things falling apart are increasing dramatically. You may want to reduce some risk before Mr. Cramer becomes panic-stricken the way that he did in 2008’s financial collapse.


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The Sellers Inside
Mind the Exuberance Gap