Mad Money w/ Jim Cramer 7/14/26

**Jim Cramer** (0:00)
The board recommends approving.

**SPEAKER_2** (0:01)
Regarding that seat on the committee, we're promoting.

**SPEAKER_3** (0:02)
To boost quarterly earnings.

**SPEAKER_2** (0:04)
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**SPEAKER_4** (0:30)
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**Jim Cramer** (1:01)
My mission is simple, to make you money.
I'm here to level the playing field for all investors. There's always a bull market summer, and I promise to help you find it. Mad Money starts now.

**Jim Cramer** (1:17)
Hey, I'm Cramer.

**Jim Cramer** (1:18)
Welcome to Mad Money. Welcome to Cramer Eka. All people are my friends. I'm just trying to make it some money, my job in terms of it's entertained, but to explain and to educate. So call me at 1-800-743-CBC. Tweet me at Jim Cramer. So I'm crossing Broadway right near the exchange, and John from Los Angeles stops me this morning. He wants a selfie. Hey, I'm always supposed to do a selfie. I wouldn't have a show if I didn't. So of course, I'm gracious. To the selfie, John wanted to ask me a question, even as a beer truck was backing up right into him. After I saved his life by telling him to move back, he asked me, isn't this market too frothy, Mr. Cramer? I said, no, even as we had a fairly good day with the Dow rising 10 points, S&P gained 0.38%, Nasdaq jumped 0.90%. But he said, Jim, it seems like 1999 to me. I said, I lived through 1999 with hundreds of companies coming public that had no earnings and a ton of companies building out an Internet that simply wouldn't play ball.
Many of those companies went under, taking trillions of dollars with them, souring a whole generation of buyers who got blown out, never to return.
I told him I didn't have time to explain, and that dastardly beer truck was backing up and new again, tight spot. So I told him to watch the beer truck and watch tonight for more complete answer.
So why isn't this 1999 then? First, when you compare markets, what you have to do is you have to make them apples to apples. As I say in How to Make Money in Any Market, that means you're going to compare the price to earnings multiple of the indices or individual stocks to each other. A high P multiple means a stock's expensive, unless it also has an incredibly fast growth rate to justify the valuation, in which case that could be acceptable. You also need to measure prevailing interest rates because that's a good proxy for comparing the price to earnings ratio and the value of stocks versus a risk-free alternative.
Let me knock out the latter first because there's pertinent information from today, from this morning, thanks to a stunningly positive consumer price index reading we got, 830 At the end of 1999, which was I regarded as the fulcrum of the overvaluation, the yield, what you got if you owned a bond, the yield on the 10-year treasury stood at 6.4 percent. I'm going to repeat that because you don't hear that anymore. 6.4 percent. It's now just under 4.6 percent, which means among other things, we simply don't have the inflation we had back then, something that would inflate the value of the entire SP500. We hear so many bears fret about 4.6, 4.5, but 6.4 is a very much vicious competitive to stocks. So that cuts to making stocks a lot more compelling now than they were then on the basis of that risk-free alternative. As I mentioned, the CPI came in very light today, much cooler than expected, and rates dropped nicely. We know that there's a dip in gasoline, but that won't last because the president's Iran strategy. With the war back on, oil is coming back up. But we got welcome declines in apparel, used vehicles, auto insurance, and medical care, all of which have been high and sticky until now.