Cramer: The 3 things I want to see in a stock before buying in this bull market

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When I dug into our portfolio, I was surprised at how few of the stocks I would buy right now after their phenomenal runs.

At the beginning of the year, I was talking about how we didn't need rate cuts. Maybe one, maybe none, and others were talking about needing six of them. What kind of Canopy Growth product were they smoking? I want to be clear about this: The economy is too strong to cut rates, but the lower-income portion of this country is too weak to ignore. So, if we see unemployment spike, and we haven't yet, the Federal Reserve will start cutting. But not until then.

We don't sell to buy, or own puts or short stocks. We just own and choose not to buy more until better levels. That's how I feel about most of the stocks we own. Right now we are in no man's land and unless a stock is well off its highs I am not tempted to buy anything. You need three things to pull the trigger right now: 1. A terrific company 2. A stock price that is way too low versus that company's worth 3.

 

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