Former hedge fund manager and renowned CNBC TV host, Jim Cramer, is urging caution on speculative assets, which have been on an “endless rally” driven by speculation in recent months.
Calls For A ‘Pause’ On The Endless Rally
On Monday, in a post on X, Cramer said that he would like to see a “pause in the endless rally of speculation” among risk assets, highlighting concerns that their values might be getting ahead of fundamentals.
He said this while referring to “gold, crypto and profitless companies” that have been surging simultaneously over the past few months, with the recent federal rate cuts, along with hints of a prolonged dovish stance by the central bank, adding more fuel to the fire.
See Also: OpenAI Chairman Compares AI To Dot-Com Bubble: ‘Some Companies Will Fail And Some Will Succeed’
Analyst Ryan Detrick, the Chief Market Strategist at the Carson Group LLC, echoes similar concerns, noting that there have been “12 all-time highs” for the S&P 500 during August and September alone. The only time there were more such all-time highs during these months was in 1929, in the lead-up to the Great Depression.
Profitless Companies Surge In 2025
In 2025, several loss-making companies have seen their shares surge, fueling concerns of speculative frenzies and bubbles, as Cramer warns in his post.
Not A ‘Gold Fever’ Just Yet Amid Growing Bubble Concerns
Gold prices hit a new record high of $3,750 per ounce on Tuesday, marking a 40.8% year-to-date rally, but Detrick believes “we aren’t anywhere close to gold fever yet,” since 39% of fund managers still have 0% of their funds allocated to the yellow metal.
Economist Peter Schiff noted that investment bank Morgan Stanley (NYSE:MS) has revised its classic “60/40” portfolio rule across equity and debt, with the debt portion now split with gold. This move, he says, is tantamount to initiating a “Sell” rating on U.S. Treasuries.
He said this could not have come at a worse time, since “the U.S. Treasury needs to issue more Treasuries than ever before.”
This comes amid growing concerns of a bubble, with Meta Platforms Inc. (NASDAQ:META) CEO Mark Zuckerberg acknowledging the possibility of an AI-driven market bubble, drawing parallels with the dot-com bubble during the early 2000s.
“There’s definitely a possibility, at least empirically, based on past large infrastructure buildouts and how they led to bubbles, that something like that would happen here,” he said.
Read More:
Photo courtesy: katz / Shutterstock.com
© 2025 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
