03-16-2014, 05:51 AM
There are two worries in this market, not one, and I don't want to minimize one for the sake of the other. Recently I've talked about how the froth, the action in the alternative-energy fuel-cell stocks, as well as the common stocks of Fannie Mae and Freddie Mac, was deeply worrisome. You can't have a side-by-side market where there's immense froth in one subsection of the market and health in another. Just like in currency, the bad drives out the good, and froth can trump sanity in a heartbeat, as we know from 1999 to 2000. Of course, it can stay frothy for some time, so you can say, "Aha, there's froth, let's go." But you do have to be alert for it.
Twin Worries in the Market, Serious Fun: Jim Cramer's Best Blogs - TheStreet