This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
EXCLUSIVE OFFER: Jim Cramer's Protégé, Dave Peltier, only buys Stock Under $10 that he thinks could potentially double or triple in the next 6 to 12-months. See what he's trading today with a 14-day FREE pass.

Cramer: The Bears' Reign Seems to Be Ending

Who can blame the bulls? Let's look at what happened with the above five items. First, the tax code didn't change much at all. When it comes to income tax, 98% of the people in this nation of about 313 million don't pay any more now than they did last year. That's a phenomenal number of people who weren't impacted vs. the percent -- just about everyone -- who thought they would be. Spending had been shut down in this country because of the possibility that 98% of the people would pay much more.

More important, many rich people thought stocks would not be good assets with the tax-code changes. Dividend-paying stocks were sold aggressively. Many companies rushed dividends to their shareholders, putting tons of money into the wealthier peoples' pockets. It was a bonanza. That dividend money, already acclimated to stocks, flowed right back in. The whole worry -- every bit of bearishness about how tax rates would wreck dividend-paying stocks -- totally backfired. Then, as we now know, it triggered the most incredible rebound in dividend payers we have ever seen. In fact, the companies that were paying 5% are now yielding 4%, and the 4s are yielding 3s. That's been the trade of the first quarter -- the defining trade of the year so far -- and it is all on the backs of the bears.

Of course, the bears wouldn't stop. I remember saying at the beginning of the year that, now that taxes are unchanged, confidence can resume. Immediately I was hit with a tsunami of stories about the end of the tax holiday. I pointed out that the rate had only been a temporary dip anyway, and that it won't be a big deal. But the bears dug their paws in and made a real federal case out of it. Yet the last part of the rally of the previous quarter basically proved me right; this didn't matter at all. It was just another defeated bearish scenario that caused stocks to rally precisely because it was defeated.

Second, the Fed didn't switch its strategy because its actions are employment-based. Lots of the bears are conflated with the ideologues on this and can't accept what Chairman Ben Bernanke is doing. The bulls know it doesn't matter. Their goal is not to reason why. It's just to make money or die. These silly ideologues are fighting wars that don't matter in this turf. They are cavalry against the bulls' quad 50s and Spandaus. It's downright stupid to ever bring in political feelings about what Bernanke is going to do. Just accept that it will be the case until he retires.

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • 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 Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
DOW 16,461.32 -153.49 -0.92%
S&P 500 1,927.11 -14.17 -0.73%
NASDAQ 4,382.8470 -36.6310 -0.83%

Our Tweets

Brokerage Partners

Top Rated Stocks Top Rated Funds Top Rated ETFs