This Day On The Street
Continue to site
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

Cramer: The Bears' Reign Seems to Be Ending

Third, who would have thought it? The Europeans might actually be at a point at which there's nothing more to do. The big flash point had been failed government auctions to pay for bills that couldn't be paid. Now governments can issue all the bonds they want. The banks that own them can sell all they want. That's in part because fleeing Japanese have bought everything that moves that isn't yen. That's in part because there's no inflation to speak of, and in part because the economy actually may be hitting some sort of rock bottom that will work in Europe the way it's worked here.

The bulls seem to sense that. The stock markets over there are all flat now. They should, of course, be lower. But do you hear much about skyrocketing Italian rates? Cyprus made bond-buying even heavier, because bonds are safer than bank deposits.

As for the sequester, it turned out to be a brilliant nothing -- "brilliant" because it revealed that there is no hope for President Obama to get anything done, maybe ever, if the Republicans take the House. "Nothing" because it turned out to be small vs. the wealth effect, which the bears still refuse to take seriously. They do so at their own peril.

Think about what happened. Obama has twice tried to scare everyone that things were going to fall apart if he didn't get his way. It didn't happen. He's just an annoyance now. The press does his ceaseless bidding. He says that higher rates are still on their way, and that there will be a cap on tax deductions. Dream on. As we said on the trading desk, "take a nothing done." Plus, we will probably see a very big decline in the budget deficit because of all the tax-receipt increases. The Fear Monger-in-Chief is now the Boy-Who-Cried-Wolf-in-Chief.

As for point No. 5? Looks like first-quarter earnings are going to come in and they, too, will be nothing to write home about. But they may actually be OK because of the wealth effect and because China might have to stimulate and because Europe may have hit bottom.

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

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
Stocks Under $10

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

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

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
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free


Chart of I:DJI
DOW 17,830.76 -210.79 -1.17%
S&P 500 2,075.81 -19.34 -0.92%
NASDAQ 4,805.2910 -57.85 -1.19%

Our Tweets

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs