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Hey, I'm Kramer. Welcome to Mad Money. Welcome to Kramer Archive. My friends, I'm just trying to save a little money. My job is not just entertain you, but to educate, to teach you. So call me at 107.3 CMC tweet Mitchum Kramer all right, it's time. We need to start worrying about the froth. I've been willing to look the other way on this shoot because I figured speculative stocks would keep roaring because the public wants them badly enough to pay almost any price. But after a day where the Dow dip 172 points, the S&P declined.2.8%. Nasdaq shed.33%. I think it's time to figure out how many of these red hot stocks have overshot what they might be worth not just today, but at any point in the future. Why the change of heart? Two reasons. The first, it comes from a person I revere greatly, Fed Chairman Jay Powell. Yesterday, the speech in Providence, Rhode Island. Powell was asked about how he Fed feels about higher stock prices. He talked about how they look at overall financial conditions. And he went on to say that quote by Many measures. For example, equity prices are fairly highly valued, end quote. Now, I have no doubt that there's a whole cohort of stocks that are fair, let's say far more than fairly highly valued. That's the cohort of speculative stocks. Now I know that many of the stocks connected to the growth of data center, that's where everyone talks about these days in video metas. Alpha are regarded as expensive by many of you. But when it comes to actual earnings per share, what we care about in America, believe it or not, they're honestly not all that out of whack. Yeah, that's right. Speaking of the entire market, SB 500 is trading at roughly 25 times this year, 22 times next year's earnings. That's on the higher side, but it's not that expensive. And a lot of these stocks I just mentioned, they're within that cohort. I can live with the S and p trading at 25 times this year's earnings, knowing that the earnings are going up and the market will look cheaper next year and, and that's particularly the case with stocks like in video. But I don't know if I can keep living with the rally in the speculative stocks. The ones that don't make any money or make barely amount my they've lost money for years. Which brings me to my second catalyst, the lightning round. Now I got to tell you, I've been very permissive about speculative names on this show saying that I condone owning one super risky stock in a five stock portfolio, part of the savings program. I suggest in how to make money in any market. And this comes out next week, people. I'm signing books next Tuesday at noon in Manhattan at the Barnes and Noble on 555-5- Avenue. If you want to say hi, I'd love to see you now in the book, I Even endorse owning 2 specs if you're 5 in a 5 stock portfolio if you're younger because then you got your whole life ahead of you to earn back any potential losses. I make a point of saying how important speculation is for you to do, but you got to do it wisely. And I tell you what wisely means. And most people don't speculate wisely. But man, if the lightning rounds indicative of what people are buying, we got a real problem. Monday's lightning round felt like all the recent lightning rounds that I've been going through. We keep getting a slew of specular stocks. That's fine, you call. I want to help you that test the bounds though of My risk tolerance and they should test the balance of your risk tolerance to a Monday. I was asked about a host of companies that I think are risky as all get out to two examples. Energy fuels. You, you, you, you. That is a uranium company is great at both losing Money hitting the 52 week highlights. Now I'm a big believer in nuclear power. I'm not a big believer that nuclear power is going to experience a near term renaissance. It could take a decade to build a new nuclear plant in this country. So I question if this stock should be up over 215% for the year. I do not question that this stock is in the words of Fed chief Fed Powell fairly. I. Why the heck then did I say you you was okay? You, you, you, you was okay? Well that was because of the spectacular rally in oclo. Oklo, another nuclear stock that I've been recommending. It's up 518% for the year. When OCLO was in the 30s. I said that one good, one good headline could propel the stock to the stratosphere. Now it's in the 130. Sure enough, we got those whole slew of headlines about a $1.68 billion facility in Tennessee where Aqua will be recycling nuclear waste and fuel for its advanced reactors. Stock went to a high of 144 today before reversing hard finishing at 131. I think alcohol is a great concept and I say concept because it has no revenues. But I think with oclo. Here we go. Okay, am I clear? We got good news today. And the stock couldn't maintain its momentum. That's a bad sign. The intraday reversal. Sell, sell. Suboptimal. Then I got a question about ASC Space Mobile. That's a satellite broadband network for smartphones with a Stock that's up 158% for the year. This is a company's been losing money hand over this. Almost no revenue whatsoever. Maybe they have something but it surely isn't self evident. I finished the show Monday and went to see my research director Ben Stoddard who celebrated his birthday today. I told him I was part sick. I told him that I'm now giving so much license to these stocks that it's just going to end up hurting people. I know that so far it hasn't been a problem. Look, I've been right to recommend them. Dead right. If you've been speculating these stocks, you've won big. But I can't do it anymore, people. I told Ben I couldn't Live with myself if I kept pushing these specs at these elevated prices and he agreed, we both decided time to rein it in. What else needs to be reigned in? Okay, listen this. We ran a screen today of U.S. listed stocks worth more than $500 million that have rallied at least 50% in of September. We came up with 55 names. Get this, only six were profitable. That's ridiculous. More importantly, it is worrisome what sectors counter speculative here. Okay, that can be pretty easily group. Thankfully there are the the nuclear stocks like energy fuels. That means oclo, Nano Nuclear and BW technologies. I'd include Boom Bloom Energy. I saw them on TV today which is hydrogen fuel cells. BW and Bloom make money, the rest don't. But they're all expensive. Then there's the crypto derivatives that want to emulate the success of the company formerly known as MicroStrategy Network Strategy. They only work if crypto can keep climbing. Something that we're going to discuss later on the show and it's not positive. Now if you want crypto, do not buy these, go buy crypto. The best way to play crypto is with crypto. All right, let's think about Quantum computing which is rife with money losers that could end up being terrific. But right now they don't have much going for them other than hope. That includes IO and Q which we had on the other day. Boy, I liked what I saw, I really did. But only if you think very very long term. Stocks up 77% for the year. I think that's aggressive. There's D Wave which impressed me when they were on to it. Hit a 52 week high today but it's up 230% for the year. But again it could be ages for the business starts to take off. I don't know if they disagree with it. Both Iowa Q and D Wave are losing fortunes. Same goes for Rigetti Computing and Quantum Computing although the latter's only have 29% bargain. What else? There are the companies that look like Core. Corey is a great company that keeps winning business almost daily and I've been supporting that one. But then there's a company like Nevius and Nebulous which has some good contacts and a relationship with Microsoft, but it lose a lot of money yet its stocks rallied more than 308% for the year. There are other companies like Iran IRM, which makes power centers for bitcoin mining and is looking to pivot to identity AI data centers. Hey listen, Corey took that strategy. Iran is actually profitable but Its stock is rally 380% too hot. Remember, if you want Core weave by Corey finally, there are companies that create flying cars and novel drones and rockets and of course the requisite clinical stage biotechs which have often, they often have stocks that soar higher as their losses grow exponentially. You see them sometimes in what's known as the crawl at the bottom. When you come in the morning, stocks are up by 20, 30, 40, 50. No, I'm done with that now. I've enjoyed blessing these speculative names and so far it's great. It's been incredibly right. But after that soul searching lightning round and the words from Jay Powell, I'm going to be adjusting my view. I won't go against the dictum of one speculative stock per portfolio and it's got to be invested in wisely as I described in how to Make Money in Any Market. But the bottom line, I can no longer be so sanguine about these super speculative stocks that keep roaring around here. I can no longer just say it's going higher. I will be more circumspect in the future. And I will say if I think something's too risky to speculate on unless you're prepared to lose your entire investment, well, that's what you may do because from these elevated levels a big decline will crush you and you won't be able to come back from it. And like people in 2000, you will stop owning stocks altogether and you'll never get rich from the stock market.