Wrong! Dispatches from the Front
What's Not to Like?
Jim Cramer
08/28/00 - 11:02 AM EDT
This week is one of those weeks that seems to capture the environment perfectly. Two years ago, the market looked quite vulnerable because of the Long Term Capital fiasco. But a few years before that, I recall this period as being downright jovial, as money managers put money to work to get in ahead of other managers ... who were expected to put money to work. I know that liquidity is no reason to buy anything. It provides no valuation framework and it has nothing to do with the fundamentals. However, ever since the bull market began in 1982, liquidity has been the driver. This time, with the interest rates so low and the averages still sitting on single-digit gains, people are figuring "go for it." This morning, for example, they like everything. Good tech is flying. Semis are ramping. Banks are checking in with good gains. Brokers are ramping. Soft goods are romping. What's not to like? Normally we would be selling into this strength. But we need the exposure, so we aren't selling.