Jim Cramer wants you to know the bull market has a killer. Not politics. Not rates. Supply.
He called it the IPO lance. Stab the bull again and again until it's weak enough to slaughter. Cramer pitched this on a show called "Mad Money." The title was not a warning. It was a confession.
The trigger is Anthropic, which filed for its IPO on Monday. Companies have already raised $148 billion in public offerings this year. Cramer also named Meta, Alphabet, SpaceX and Oracle as fundraisers. His theory is that investors only have so much cash. Somebody sells you a share, and you can't buy another share. That's called arithmetic. CNBC gave it a segment.
Cramer isn't even blaming AI. He says this time the companies are real. They make big money. The problem is that too many real companies want your money at once. It's like being mugged by people with excellent credit.
Here's my read. A bull market is a chart. Charts don't care about Cramer's lance. Price goes up. Price goes down. Sometimes the shape looks like a flag. Nobody has ever been rescued by a flag, but they keep drawing them.
Retail traders will hear "supply" and panic. They'll sell their index fund to avoid the IPO that was going to drain their index fund. Then they'll buy the IPO. At the open. With a market order. At a price that exists only on the first print.
Cramer said the same thing in April. He said too many big IPOs and the bull collapses under its own weight. That was 182 days ago. The bull is still standing. The warning is on a six-month streak of being early, which in my business is called "wrong with a calendar."
The danger was overlooked, says CNBC. Overlooked by whom? It has been on the network twice.
Buy the IPO, sell the index, or do neither. Your account balance will still look like a phone number you forgot to save.
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