Other than reaffirming to "Dow deniers" that the move from 3,200 to 11,000 between 1992 and 2000 did indeed happen, this is my favorite part of that piece:
... the greatest thing about the bull market of the 1990s was how little Washington mattered at all. For all of the griping about the havoc that Democrats wreak on business, it was simply a benign time with a White House that was deeply wired to creating jobs and allowing the private sector to blossom.
Right on. Jim goes on to point out that, "Tax rates just weren't much of a factor in decision making, certainly not as much as the certainty of knowing what they were and what they would be ..."For a repeat of the Clinton-era bull market, Cramer believes we need an environment where companies are comfortable spending and reinvesting without political overhang. That's all good. And logical. And let's hope whatever needs to happen in Washington happens so corporate spending accelerates. As I noted in Why Are So Many Big CEOs Complete Losers however, "fiscal cliff"-related uncertainty doesn't keep Jeff Bezos from spending at Amazon.com (AMZN). And, on the other end of the spectrum, it doesn't stop entrepreneurs with families from paying for their own health care while they launch fresh startups. It comes down to mindset right now. In large swaths of corporate America, you have companies sitting on cash and using gridlock in Washington as the reason. In many cases, I call it an excuse. At the same time, I understand and can respect the notion that you need to know the rules before you aggressively play the game. There needs to be some context here, though. I follow almost everything, but I most closely cover tech, Internet and media companies across sub-spaces. Behaviors in these sectors differ considerably from, say, what goes on in the industrials or at particularly blue chip firms. If you're in tech, Internet, old guard media, new media or social media, there's no excuse for not spending. If you cannot find opportunity, there's something wrong. Even though I fully admit to missing badly in the near-term on Sirius XM (SIRI), comments outgoing CEO Mel Karmazin made a few months ago -- at least once to Cramer on Mad Money -- rub me the wrong way. When asked about what to do with his company's cash, Mel said that because he did not see attractive acquisition candidates, there's no option other than to return capital to shareholders. While SIRI might have more life left in it -- after hitting $3.00 intraday Tuesday -- I still cannot get bullish long-term. I want to see what Liberty Media (LMCA) plans on making of satellite radio.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV