Search Jim Cramer's "Mad Money" trading recommendations using our exclusive "Mad Money" Stock Screener.
NEW YORK ( TheStreet) -- "The economists don't know a thing about stocks," Jim Cramer proclaimed to his "Mad Money" TV show viewers Thursday as he sounded off against the academics who have been trying to keep individual investors out of our red-hot stock market.
Cramer said the economists who warn that weakness in China and Europe will spell doom for U.S. stocks or those who warn that increases in our payroll taxes or the price of gasoline will cause our economy to stop in its tracks have been wrong so many times it's a wonder they still bother to offer their opinions. These macro-economic theories may work in the classroom, he said, but so far in the real world they haven't amounted to a hill of beans.
Cramer once again explained how important the housing sector is to the U.S. economy. Rising home prices make people feel wealthier, while new home construction allows them to move around more freely. A rising stock market has boosted IRAs and 401(k)s around the country, he said, and the strong dollar has created bargains for those traveling or selling overseas.
The economists cite the rise in payroll taxes and gasoline as major worries, but for most people those changes have been barely noticeable, said Cramer. The fact is that most people are better off now than they were four years ago and that simple notion has lifted stocks from Macy's (M) to Panera Bread (PNRA), Pfizer (PFE) to REITs including Kimco Realty (KIM) and Tanger Factory Outlets (SKT).Cramer said it doesn't take a genius to see what's happening in the markets, it just takes someone looking at individual companies rather than macro-economic trends that are hazy at best. The economists don't know about stocks, he concluded, because if they did they would see how dead wrong they've been for months.
Off the ChartsIn the "Off The Charts" segment, Cramer dove into the health of the Nasdaq with colleague Tim Collins to find out if the tech-heavy average can prosper without the leadership of Apple (AAPL), a stock Cramer owns for his charitable trust,
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV