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Jim Cramer's Take on the Fed, Retirement and Stock Buybacks

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The times are changing, Jim Cramer told viewers on his Action Alerts PLUS members-only call, and recognizing the different market rules is key to making money in this environment.

“The fact is that rates are low and despite all of the people who opine on the Fed, the truth is that rates are low on the long end, too, and the media many not want to say this, but the Fed does not control them,” Cramer said.

Cramer added on the monthly call exclusive to club members that the market worry for the past 10 years has been that baby boomers would sink the market by taking money out to fund their retirements, but for 10 years that hasn’t been the case.

Part of the reason you haven’t seen the outflows, Cramer said, is that pulling money out will get investors only a 2% return on their money and “as much as I do not care for the oils, I would rather own the pathetic BP than instruments that pay you almost nothing.”

Companies also have turned to share buybacks to bolster their stock prices, leading to different rules when companies like Chipotle Mexican Grill  (CMG)  run into trouble, Cramer said on the call.

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