These were simply random stocks that I looked up -- just anything that came to my head. It is astonishing. It's almost impossible to find stocks with increased float. Only the banks haven't been able to retire stock due to the Fed. But, believe me, if they did I have to believe these stocks would march much higher.
I think these buybacks are creating the situation we have now. Fund managers who have been skittish for years, and hedge funds who try to run balanced books, are just getting their heads handed to them. In fact, anyone who has sold anything has had their head handed to them, and there is no way you could have beaten these averages without using leverage, which I know mutual funds don't do. While I am sure there are hedge funds that borrow to buy, there simply aren't that many out there that do so.
So you get a situation in which people start putting money into their IRAs and 401ks again after years of what I bet are desultory contributions, and the funds have to reach just to do any buying.
That's the only explanation I see for these wondrous charts. For years it was all zero-sum: When you saw UnitedHealth (UNH) or Allstate (ALL) move up, you could bet that Eaton (ETN) and Cummins (CMI) were being killed. There was no way you could ever have the airlines, travel and leisure and oil all go higher. These moves we're getting now had been inconceivable at any time since the start of the millennium.I know, doesn't matter. We will hear the same old questions asked time and again: Doesn't the Fed scare you? Aren't you worried about the revenue not coming through? May isn't over, so maybe it isn't too late to sell, because it is such a horrid month. It's been a huge pile of garbage. All that cautious advice has been horrendous. But there's one thing you know for certain. Those who have dispensed it, or have been worried about it, are never wrong. They just aren't as rich as they should be. At the time of publication, Action Alerts PLUS, which Cramer co-manages as a charitable trust, was long FB, PF and ETN.
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