Editor's Note: This article was originally published at 7:30 a.m. ET on Real Money on May 29. To see Jim Cramer's latest commentary as it's published, sign up for a free trial of Real Money.
NEW YORK ( Real Money) -- The move in Treasury rates Tuesday was pretty breathtaking -- as any move is, percentage-wise, when it starts from such a low base. The action reversed a very strong morning -- perhaps stronger than it should have been, because end-of-month markups have been taking place three or four days before the end of each month, and I think the market had been in the process of a big one.
When we see a back-up in rates, we recall all other back-ups and remember that they are horrible for all stocks. I get that. It's what you should be thinking: The bubble in bonds has been popped, which spells the end of the rally in everything.
In fact, for now I don't even feel like disagreeing with that argument. I like being part of the fray for a moment until the market gets its bearings.Because the truth is that the conventional wisdom has meant nothing since the Great Recession, and since the takeover of globalization and world fund flows. Everything that we have learned has been pretty worthless. Lets just take the curious case of Bristol-Myers Squibb (BMY - Get Report), my go-to equity that's meant to mock all of those who think they understand the way the market works, when they actually do not. Here's a stock that has put on 15 straight points since writing off a $2.5 billion acquisition of Inhibitex, a company it purchased eight months prior. Inhibitex was thought to have a cure for Hepatitus C, a scourge that could be affecting tens of millions of people. That write-off should have crushed the stock. But it didn't get hit for more than $2 because, at that point, its dividend yielded 4.5%. So it switched from being a growth stock to being a bond equivalent, and stopped in its tracks at $31 so people could use it as a CD with growth. Then it started showing some leg for its new anti-cancer pipeline, and the stock climbed to $43. We sold it there for Action Alerts PLUS because we feared that it would have a terrible quarter and that the stock would sell off.
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