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: Equities Are the Saner Market

NEW YORK (Real Money) -- How can anyone not short 10-year U.S. Treasuries at 2.4% with job growth and economic expansion increasing in strength?

At the same time, how can anyone not be long U.S. Treasuries with French 10-year bonds yielding 1.3%, even though the short-euro call is a very crowded trade? This is a world where the European Central Bank just makes a surprise rate cut -- done, I think, to take the euro quickly below $1.25.

This conundrum is incredibly important because it does say that one of these two markets, if not both, is very wrong. I mean very wrong.

Obviously I am not just talking about France. Three years ago we were talking about Italian and Spanish 10-year bonds at 7% with their governments about to go bust.

Now we are talking about 10-year Treasuries at the same yield as ours, and while the countries are a tad more solvent, they certainly have to be considered just parking instruments. But then again, that makes German 10-years at less than 1% no-parking instruments unless you feel that deflation's going to continue at a 1%-2% pace.

Obviously in Europe there is no demand for money, which is largely why ECB head Mario Draghi is frantically pulling out the stops talking about buying asset-backed bonds. Anything to get anyone to borrow and then build or buy or create -- that's his mantra.

Here there's demand, but our banks are petrified to show any uptick in bad loans that would just bring them back in the crosshairs of the government. Better just to say no.

Over there no one's asking, so there is nobody to say no to.

:

Here our banks are squeaky clean and yet is there a day that goes by that we hear they aren't and there is so much more work to do to ensure they don't collapse?

There the banks have never even had real stress tests and have been able to do whatever they want and are still part of the problem and can't even be part of the solution.

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 17,707.01 -123.75 -0.69%
S&P 500 2,056.81 -19.00 -0.92%
NASDAQ 4,763.4210 -41.87 -0.87%

Our Tweets

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs