Jim Cramer warns of market ‘excess’ as stocks surge

CNBC's Jim Cramer on Monday described signs of "excess" he sees across market sectors.
He said these widespread dramatic gains make him somewhat apprehensive, warning investors not to get too greedy.
"If you had the good fortune to participate in some of these seemingly excessive moves, I think you should give thanks to your gains," he said. "And that means taking some profits if you're sitting on a huge win, especially anything like a double or a triple in just over three weeks' time."

CNBC's Jim Cramer on Monday described signs of "excess" he sees across market sectors, saying these widespread dramatic gains make him somewhat apprehensive, warning investors not to get too greedy.

"If you had the good fortune to participate in some of these seemingly excessive moves, I think you should give thanks to your gains," he said. "And that means taking some profits if you're sitting on a huge win, especially anything like a double or a triple in just over three weeks' time."

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While it's normal for the averages to rise following election day's "Republican sweep" — as Wall Street expects deregulation and lower taxes — Cramer pointed out that many roaring stocks aren't well-known or members of the Magnificent Seven. He reviewed 66 fairly sizable stocks that have seen total returns of more than 50% for the month of November, stressing that some are more legitimate than others.

He said he might have less trepidation if the runs were concentrated in one sector. He named a variety of fields including tech and anything related to artificial intelligence, fintech, space and alternative energy. He also looked at "Trump trades," or stocks that Wall Street has embraced as they anticipate what President-elect Donald Trump's term, like private prison operators and oil service companies.

But Cramer stressed that he doesn't think investors should sell their entire positions in hot stocks, just that they should take profits because these powerful gains, for the most part, aren't sustainable.

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"Trust me when I say these types of runs are highly unusual, and they do tend to fizzle out eventually," he said. "So, take what's been given to you, give thanks for your gains, and make sure you're not letting wins turn into losses."