The tech heavy Nasdaq is flirting with a level not seen since the Dotcom Boom went bust.
Hard as it may be to believe, more than a decade has passed since the Nasdaq composite last traded at 4,000. However, in recent days the index has again been flirting with the somewhat lofty level.
The milestone has generated some concerns on Wall Street.
Skeptics can't help but wonder if technology stocks are about tumble again, as they did in late 2000 and 2001.
They argue the sharp premiums assigned to Netflix and Tesla are again signs of irrational exuberance just as investors became irrationally exuberant about eToys or Pets.com, two of the more high profile dotcom failures.
With the Nasdaq flirting with the lofty milestone, is it time to pack it in?
Cramer says it's time to make a decision.
"You can look at that one of two ways: that the tech sector is totally overheated again and can collapse at a moment's notice. Or you can look at it as if a whole new group of companies is now excelling and that's where the money is made," Cramer said.
"I proudly endorse the latter view even as I know it is controversial and considered to be sacrilegious to the orthodoxy of traditional valuation," Cramer added.
In other words, the Mad Money believes many tech stocks have such strong future potential, the current levels of the Nasdaq can be justified.
"Small tech companies are creating disruptive technology that could potentially change the landscape," Cramer explained.
They could absolutely change the way we live.
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"I fear sometimes we forget why we invest in tech," Cramer said. "We don't do it for cheapness, we don't do it for dividends, we don't do it for buybacks, we do it for growth," he said.
And when you consider the growth potential of some of these disruptive technology companies, Cramer thinks current levels in the Nasdaq make all the sense in the world.
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