He said the market has been in denial that commodity cost inflation has finally been broken, but today, it finally realized that lower commodities is good news for stocks.Cramer explained that ever since the crisis in 2008, the markets have been pounding consumer stocks and along with practically any stock that wasn't a producer of oil, metals or other commodities. As the price of commodities rose and inflation kicked in, the central banks of Brazil, India and China all began to raise interest rates to stop the run up. But with the release of 60 million barrels of oil from strategic reserves, Cramer said the ugly head of inflation has finally been beaten, sending the price of everything from copper to nickel to wheat and corn lower. Cramer said the problem is that here in the U.S., thanks to failed political policies since 2008, America hasn't seen this global trend. He said that the U.S. never had a building spurt caused by stimulus spending, nor did it see a rebound in housing. Thus here at home, our interest rates stayed at zero, which allowed U.S. stocks to head lower not on fundamentals, but on the bad news of other countries. But Cramer said all of that is changing now, as companies from Ford (F) to General Mills (GIS), DuPont (DD) to Caterpillar (CAT), a stock which he owns for his charitable trust, Action Alerts PLUS, have all headed higher. Cramer said at this point in the business cycle, the estimates are too low and forecasts are expecting higher commodity prices. That means that company after company will deliver great numbers, as Nike (NKE) did today.
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