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. Will you be there when Cramer makes his next move?
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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.
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