This Day On The Street
Continue to site
ADVERTISEMENT
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: What's the Right Rate for the 10-Year?

Can you get to 3% without the fed funds rate going to, say, 1%-1.5%? I don't know. But I believe that there simply isn't that much demand for money that is 200 basis points higher than the 10-year, which is pretty much where mortgage rates are settling out.

So, if rates go to 3%, which is what we thought would happen two weeks ago, would there be demand for 5% mortgage money?

Frankly, I doubt it. Not without more jobs being created. That, on a jobs day, brings me back to this chicken-and-egg conundrum. Without more jobs being created, we aren't going to get the demand for money that would send rates still higher.

Of course, if the government started to furiously print 10-year paper and the Fed decided not to buy any of it, perhaps we would have rates go still higher irrespective of actual demand for money. That's always a possibility. But my conclusion, right now at least, is that 3% is about as high as rates could go on a real tapering, which by the Fed's admission we are not having, and that's why we have been able to settle back into a world where we can pick stocks again without fear of another bond avalanche.

At the time of publication, Action Alerts PLUS, which Cramer co-manages as a charitable trust, had no positions in the securities mentioned.

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

Markets

Chart of I:DJI
DOW 16,204.97 -211.61 -1.29%
S&P 500 1,880.05 -35.40 -1.85%
NASDAQ 4,363.1440 -146.4150 -3.25%

Our Tweets

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs