Jim Cramer has identified the next threat to the bull market. Companies issuing stock. Companies issuing debt. The basic mechanism by which companies have raised capital since the invention of capital markets.
This is like warning beachgoers that the ocean is wet. Yes Jim, when companies need money they sell things. They sell equity. They sell bonds. This has been happening since the Dutch East India Company figured out how to fleece strangers in 1602.
The concern here is supply. Too many shares flood the market and prices go down. Econ 101 stuff. Except Cramer presents this as some dark cloud on the horizon instead of what it actually is: Thursday.
Stock offerings happen in bull markets because that's when companies can get away with it. CEOs aren't stupid. They don't try to sell shares when the market thinks their company is dogsh*t. They wait until retail traders have convinced themselves that a logistics company is actually a tech company, then they dilute the f*ck out of them.
Debt issuance works the same way. Rates are wherever they are. Companies need to refinance. They issue bonds. This is not a threat. This is a calendar item.
But CNBC needs content. Cramer needs to say words into a camera. So we get this. A five-alarm warning about the normal functioning of capital markets.
The beautiful part is he specifically says it's not the Iran war. He had to clarify which obvious thing wasn't the risk so he could warn you about an even more obvious thing. That's like a weatherman saying the forecast isn't rain, it's water falling from the sky.
Retail traders will hear this and panic-sell their three shares of whatever stock some guy on Reddit told them to buy, then Cramer will be back next week explaining why the real threat is companies wanting money again.
Photo by Kevin Martin Jose on Unsplash
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