Cramer: An Exercise in Stupidity
Editor's Note: This article was originally published at 7:15 a.m. ET on Real Money on May 31. To see Jim Cramer's latest commentary as it's published, sign up for a free trial of Real Money.
NEW YORK ( Real Money) -- We've all come to the point where it becomes an exercise in stupidity to sell U.S. markets down on "same old same old" -- yet we still take our cues from the futures that are precisely that.
Think about it. What happened last night that really affected the U.S. equity markets? Italian car registrations? Eurozone-area jobless rate? So that's why we are going to sell our stocks down 0.5%?
But we accept it as gospel that the futures are right. Let me ask you: Were they right when we came in here every day trapped by the CurrencyShares Euro Trust (FXE)? Or oil? Or copper? Or some other world indicator?The truth is somewhere else these days. Europe's got no growth. It might be bottoming, but there's no growth -- no "spark," as Citigroup (C) CEO Michael Corbat said the other day. China growth is decelerating from 10% to, what, let's call it 5%? Anything less than that might be bullish? They are finding that it's not easy to go from an export-driven market to one driven by consumption. Brazil, the star of Latin America, wants to stay above 2% growth if it is lucky. As for the U.S.? We are trying to go from 2% to 2.5% in gross domestic product growth. That's not enough for anyone to get excited about, and not enough to cause a tightening, but certainly better than anyone else. The economy that's better than everyone else's doesn't have its terms dictated by the others, especially when everyone acknowledges that it isn't as bad as it used to be. That is a real good summary of the moment. Now, this is all regarded as radical. When the U.S. indices hit their highs Tuesday -- some of it, I admit, thanks to month-end markups -- I was disgusted to hear the same old bears making the same old arguments without any shame or recognition. As usual, the bulls had to apologize for their bullishness. As usual, when a pretty simple USA Today headline the next day acknowledged that there had been a bull market going on for, say, 9,000 Dow points, this somehow constituted a red flag.
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