If the Fed adopts anything other than lockstep rate raises, if the Fed says, "You know what, we want to wait and see," if the Fed is not on autopilot, that's good for stocks.
That's possibly what is behind some of the rally. But remember what we went through last week: an options expiration that was sheer hell. Remember where we are in the calendar: We are through the worst part of the year, and we tend to get excellent rallies from here on in.
I believe we all want to ascribe animal spirits to a new Fed chair. I believe that what we ought to do is say, "Only Greenspan would keep up this pace of tightenings, regardless of whether the economy is cooling or not."
With Greenspan out of the picture, I believe we get rationality and reason, and with those you get price-to-earnings multiple expansion, not contraction.
All good, all good.
P.S. CRAMER: KASS'S CALLS "RIGHT AS RAIN"
Jim Cramer says, "I start my day reading Doug Kass because he's been right as rain." To benefit from Doug Kass's forecasts, get RealMoney Silver, the only place where you'll find his exclusive Trading Diary. Try it FREE today.
P.S. Will you be there when Cramer makes his next move?
Strong brands and companies with vast market exposure can help bolster your portfolio. Jim was able to lock in a 64% gain by buying Ingersoll-Rand at $13 and selling at $22.50. Action Alerts PLUS members were the first to see these moves. Were you among them? Free access today!
P.S. BREAKING NEWS: Cramer's Portfolio beat 9 out of 10 of the ten largest mutual funds rated by Morningstar and Lipper in Q1. I want your portfolio to do just as well, so I'm inviting you to trade with Cramer for free right now.
James J. Cramer Walk Higher on Wrongfooted Bears 10/24/2005 3:00 PM EDT With too many shorts, short supply, Refco selling done and some good earnings from tech and oils, we're headed up.
James J. Cramer Cheers to the End of the Greenspan Era 10/24/2005 12:57 PM EDT Bernanke seems better prepared to use the Fed's tools to cope with bubbles and today's financial world.
James J. Cramer Find the Fuel for Johnson Controls 10/24/2005 11:16 AM EDT Something bigger than its earnings results is driving the stock.
James J. Cramer is a director and co-founder of TheStreet.com. He contributes daily market commentary for TheStreet.com's sites and serves as an adviser to the company's CEO. Outside contributing columnists for TheStreet.com and RealMoney.com, including Cramer, may, from time to time, write about stocks in which they have a position. In such cases, appropriate disclosure is made. To see his personal portfolio and find out what trades Cramer will make before he makes them, sign up for ActionAlertsPLUS by clicking here. While he cannot provide personalized investment advice or recommendations, he invites you to send comments on his column by clicking here. Listen to Cramer's RealMoney Radio show on your computer; just click here. Watch Cramer on "Mad Money" at 6 p.m. ET weeknights on CNBC. Click here to order Cramer's latest book, "Real Money: Sane Investing in an Insane World," click here to get his second book, "You Got Screwed!" and click here to order Cramer's autobiography, "Confessions of a Street Addict." Cramer appreciates your feedback and invites you to send him an email by clicking here.
RSS FEEDS
PODCASTS
