Jim Cramer's Best Blogs

Jim Cramer fills his blog on RealMoney every day with his up-to-the-minute reactions to what's happening in the market and his legendary ahead-of-the-crowd ideas. This week he blogged on:

• dollar drivel,
• the commercial real estate "crisis," and
• a ludicrous pattern.

Click here for information on RealMoney, where you can see all the blogs, including Jim Cramer's -- and reader comments -- in real time.

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Dollar Drivel
Posted at 3:40 p.m. EST, Nov. 9, 2009

If I hear, one more time, someone asking how stocks can move up with a weak dollar, I am going to scream. Stocks are moving up because of a weak dollar, for heaven's sake. Every industrial that is in a competitive situation -- companies like Deere (DE Quote), Bucyrus (BUCY Quote), Joy Global (JOYG Quote) and Caterpillar (CAT Quote) -- are just huge winners here. Ford Motor (F Quote), with a gigantic international business, does so well in this environment. Aerospace plays with big international businesses, like Boeing (BA Quote) and all the parts that go into it, can take so much share. United Technologies (UTX Quote) and 3M (MMM Quote) go head to head against so many companies that have wares getting more and more expensive.

And don't forget all of the translation gains that can be had for everyone from McDonald's (MCD Quote) to Coca-Cola (KO Quote). Federal Express (FDX Quote) -- classic weak-dollar play.

Yet this canard continues. I don't even know where the heck it comes from. How could people be so, so misinformed? It drives me crazy, and it keeps people out of stocks relentlessly.

Now, don't forget that oil goes up because of a weak dollar, which then pulls up the stocks of up so many U.S. oil companies. (By the way it is hilarious that stocks barely go down when oil goes from $80 to $78, but then when oil goes back from $78 to $80, they soar.)

Maybe the weak dollar is just something to talk about by people who believe it should affect stocks even though it doesn't? Does the empirical mean nothing to these people?

We have great manufacturing. We have been free traders for years. It has gotten us nowhere. Now we are finally getting a break because the dollar's declining. We are winning business back.

What's wrong with that?

And why would anyone ever think that's bad for the stock market?

It's just a positive. Do not overthink it. Ask yourself where the stock market has gone during this period of weak-dollar activity.

In the end, isn't that what's conclusive?

Random musings: Credit standards tighten, and that's bad? Another good thing. We don't want to go back to where we were, do we? ... Oh, just for more insult: I do not care about the dollar carry trade. If you are foolish enough to be a foreign currency trader here, then you are missing the greatest bull market in history -- worldwide equities. I think that dollar talk is inside baseball except when it comes to boosting earnings per share.

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