With all of the investors fretting about the trade war with China and the Federal Reserve's plans for interest rates, what CNBC's Jim Cramer is really worried about here is jeans.
"Yep, I think the biggest threat to this bull market is denim," he said Wednesday on "Mad Money" as stocks rose on hopes of a U.S.-China trade deal. "I, right now, at this very moment, am more worried about jeans than I am about China."
Cramer was referring — somewhat jokingly — to Wednesday's news that denim company Levi Strauss filed the paperwork for an initial public offering. While he admitted that "it's an exciting deal," he said it will likely cause investors to sell shares of market stalwarts like PVH and Ralph Lauren so they can get in on the IPO.
"Now, maybe you think I'm being small-minded here — it's just jeans, right? Wrong. See, it's not just jeans," he said. "We're about to get a tsunami of new initial public offerings that will flood this stock market with new supply, and there simply isn't enough money coming into the stock market to be able to handle all of this merchandise."
While he acknowledged that most of the upcoming deals are from companies that have great track records, Cramer worried that the market simply won't be able to sustain the IPO tidal wave.
"We are about to get hit with a perfect storm of IPOs, and regardless of how good this new merchandise might be, I'm concerned that the market won't be able to handle it all without taking, maybe, all stocks lower," he said.
Click here for his full analysis — and the IPOs you should have on your radar.