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: Fret All You Want

Editor's Note: This article was originally published on Real Money at 6:00 a.m. EDT on May 13. To see Jim Cramer's latest commentary as it's published, sign up for a free trial of Real Money.

NEW YORK ( Real Money) -- So the Federal Reserve does have a plan to stop buying bonds. You mean it isn't just going to go cold turkey? You mean it isn't just going to wreck everything without any thought?

That's what I thought when I read the Wall Street Journal piece about how Chairman Ben Bernanke is all set with a plan for ending the third round of quantitative easing. The premise of the piece, in itself, implies that he hadn't even considered it and would never do so.

The article, to me, was a "duh." Still, I am sure plenty of people will say "Look, he had a plan. When there's a plan he must be ready to use it."

Now, it is true that there could be some reason to believe that, say, 3%-yielding stocks won't be as competitive with bonds if Bernanke decides to stop buying and start selling like a madman. But it is entirely possible that there will be actual buyers of bonds, given the widespread interest in fixed income all over the globe.

If you ask me, I believe the whole bond-buying theme, initially so important, is no longer as dicey or as dangerous or as germane as it once had been. That's because I simply do not believe rates are going to go up so much, given that government bonds worldwide have declined so much in yield. If anything, I think the worrisome investing place -- besides bonds that are well above par and the funds that own them -- might very well be the corporate market, where the returns have truly been pathetic.

You see, if I am right about the receipts of the government, you may not have as much supply out there as you think you might. There's demand for bonds away from Bernanke, and it's possible there isn't as much supply as there had once been.

In fact, I would rather pay for a stock with a 3% yield with upside than a 2% corporate bond with no upside whatsoever. It's the competition in bonds that is in trouble -- but, from what I can tell, there's been a tremendous issuance already, so it might not be as big a deal anyway.

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

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
  • 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 serious 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

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
Real Money
Try it NOW

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


Chart of I:DJI
DOW 17,798.49 -14.90 -0.08%
S&P 500 2,090.11 +1.24 0.06%
NASDAQ 5,127.5250 +11.3820 0.22%

Our Tweets

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs