Don't Fear September

Anyone approaching the month of September long will feel pressured to sell given the history of the month. We all know that September's been brutal for years in markets that are up and we know that everyone's expecting bad things to come in. We have now read gazillion articles about how it is impossible to have a real rally based on earnings with no sales and each article sounds incredibly compelling.

Of course, you could have written the same article for the last 3,000 points, but that's OK too.

We cannot expect to see this story: "Can you imagine how much money these companies will make when sales get better?" The articles are all static -- there can't ever be more sales because everything is sluggish and anemic and the consumer's not borrowing enough and the stimulus will never hit and the Chinese are the only people buying anyway.

So what that as recently as 2007 we had companies expanding rapidly not in China but in Europe because there was so much business to be done, and that India and Brazil represented equal if not better opportunities than China?

It is almost as if we never expect anything to spring back ever. But things will rebound -- even the impossible things.

Consider Radian (RDN - commentary - Trade Now) and MBIA (MBI - commentary - Trade Now). Here's two with at least a dozen obituaries -- I think I attended the funerals, definitely the wakes.

But now they are flying high, getting numbers bumped, springing back to life.

Things can spring back to life, even things that aren't supposed to.

So why should I think that this market as a whole can't triumph over these worries?

Again, I believe that September will bring a contained short selloff like the previous selloffs. Sure, that can be frightening.

But after this run we deserve some fright. Just remember things have a habit of coming back.

So don't be too negative.

At the time of publication, Cramer had no positions in the stocks mentioned.

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