Mad Money

Cramer counters Wall Street worries around markets rising in tandem

Cramer counters Wall Street worries
VIDEO1:5001:50
Cramer counters Wall Street worries

While simultaneous upward moves in the markets might sound like good news, Jim Cramer saw one report on Wednesday preaching caution about the "everything rally."

"This morning we wake up to a starkly negative headline — here we go — in the Wall Street Journal: 'Markets Rise in Lockstep, Raising Worries of Reversal,'" the "Mad Money" host said. "The big concern? Stocks, bonds, gold and Bitcoin are all moving up in unison, which makes the market 'vulnerable to sharp reversals.'"

While Cramer is never one to say that the market is immune sharp downturns, especially with a president he finds to be "capable of some acts that, let's just say, were a little unthinkable in previous administrations," Cramer did find some counterweights to the Journal's argument.

For most of his career, Cramer saw interest rates go down as stocks went up. Now, investors want to see the Federal Reserve hike rates to confirm the strength of the economy with a market also on the rise.

Watch the full segment here:

Cramer counters Wall Street worries around markets rising in tandem
VIDEO5:1405:14
Cramer counters Wall Street worries around markets rising in tandem

"But we've never had such an incredible fluidity in fixed income globally, nothing like this," Cramer said. "You want to own an Italian 10-year bond at the same rate as a U.S. one? That's insane if you do. So that money's coming here, not staying over there. How about a German 10-year where you literally make nothing? That money's coming here, too."

The action in the international bond markets marks one extenuating circumstance in the age-old lower-rates-higher-stocks paradigm. Another one is the movement in gold.

"The precious metal has had many sustained rallies right along with stocks. There are plenty of structural factors that make it that way as gold is, by the way, a worldwide market more heavily influenced by fund flows from China and India than the United States," Cramer explained.

As for , Cramer said there is a reasonable explanation for why the digital currency is relentlessly surging higher.

An effectively untraceable way to move money, Bitcoin provides a way for people to extract cash from a failing or unstable country without being followed or having it confiscated.

"It's invisible to the taxman so those countries in Europe that raised taxes? They provide a ready market for Bitcoin. It's the answer for the Chinese because gold's too easily confiscated. You don't think it could happen in those countries? Confiscation? Hey, how about a history lesson? It happened here — FDR confiscated our gold in 1933. You can't confiscate Bitcoin," Cramer said.

And organizations worried about the risks of cyberattacks have been purchasing Bitcoin to pay off hackers, a trend Cramer insisted is completely separate from, for example, the price-to-earnings ratio of pharmaceutical giant Johnson & Johnson.

"Again, there's plenty of unseen worries, ones like Iraq's invasion of Kuwait in 1990 that wrecked a perfectly placid summer," the "Mad Money" host said. "But the fact that stocks, bonds, gold and Bitcoin are all rising at once likely won't be the cause of any reversal. You know what I think it is? I think it's an evergreen headline that generates a lot of fear but, frankly, not much else."

Questions for Cramer?
Call Cramer: 1-800-743-CNBC

Want to take a deep dive into Cramer's world? Hit him up!
Mad Money Twitter - Jim Cramer Twitter - Facebook - Instagram - Vine

Questions, comments, suggestions for the "Mad Money" website? madcap@cnbc.com