In a fiery segment on CNBC today, former hedge fund manager Jim Cramer issued a blunt warning to those invested in the retail-driven stocks: “take profits and get out.”
The veteran market commentator expressed deep concern over speculative buying in niche sectors like rare earths, nuclear energy, and flying cars – many of which are heavily concentrated in ETFs favoured by younger traders.
Cramer’s message was clear: “Just sell them. Please take some profits. Don’t do this to yourself.”
His remarks come amid rising insider selling and fears of a repeat of the dot-com bust, where retail investors bore the brunt of the collapse.
The case against rare earths, flying cars, nuclear energy stocks
Cramer singled out retail-driven, high-flying stocks like rare earths, nuclear power, and flying car as emblematic of speculative excess.
“This is where all the rare earth is bought and the nuclear is bought,” he said, referencing platforms like Robinhood that cater to younger investors.
While acknowledging that these platforms offer “great IRA plan” and have tried to be responsible, he warned that the buying frenzy lacks fundamental discipline.
His concern stems from the disconnect between valuation and reality, especially in sectors with long commercialization timelines and uncertain regulatory paths.
“Those exchange-traded funds are a disaster and a disgrace,” he added, criticizing the government and SEC for allowing such products to proliferate unchecked.
For Cramer, these trades are less about investing and more about gambling.
He’s urging investors to cash out before it’s too late – adding the insiders soon will, and that will trigger a sharp sell-off in these names.
Even Oracle stock isn’t safe: Cramer says ‘sell the 5x’
Surprisingly, the Mad Money host extended his sell recommendation to Oracle as well – a stock typically viewed as a stable tech play.
Referring to leveraged bets like “the 5x Oracle,” he cautioned against overstaying positions in even well-known names.
“Do not overstay your welcome,” he warned, suggesting that momentum-driven gains may soon reverse.
While ORCL itself has benefited from artificial intelligence (AI) enthusiasm and cloud expansion, Cramer’s concern lies in the aggressive trading behaviour around it, especially via leveraged ETFs and derivatives.
His broader message: when insider selling picks up, which is already starting to, and valuations stretch, even blue-chip stocks can become dangerous.
For investors riding the wave, now may be the time to lock in gains, Jim Cramer concluded.
A wake-up call for retail investors?
Cramer’s segment wasn’t just a market take – it was a cautionary tale.
Drawing parallels to the 2000 tech bubble, he expressed genuine concern for younger investors who may be overexposed to volatile sectors.
“I just hope these people all do okay,” he said, underscoring the emotional toll of market reversals.
His advice is simple but urgent: take profits, reduce exposure, and avoid getting caught in the hype. Whether it’s rare earths, flying cars, nuclear energy, or even Oracle, the message is the same – discipline over excitement.
In a market that rewards patience and fundamentals – Cramer’s warning may be the reality check investors need.
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