NEW YORK (TheStreet) -- While the markets cheered the Federal Reserve's no-taper decision by pushing equities to all-time highs, TheStreet's Jim Cramer tells Debra Borchardt why he's not buying the hype.
Although many investors are upset by the Fed's decision, it was hard to tell when equities went higher. But according to Cramer, what choice did Chairman Ben Bernanke have?
With the back-to-school season the worst in roughly five years, heavy selling in
from China and Brazil, a slowdown in housing and a looming government shutdown, there are too many issues around to warrant a taper.
However, when asked about whether the Fed is stuck, Cramer said he doesn't think so. Because if the Fed really wanted to, it could stop quantitative easing. Then stocks would fall and interest rates would go up.
Cramer said that
are at fault for not creating new jobs and that Bernanke is doing his best by pumping money into the economy.
Cramer stressed that he would rather be a seller than a buyer ahead of the government shutdown, which will likely weigh on the already overbought markets. He added that he trimmed the
position, as well as others, in the Action Alerts PLUS portfolio.
-- Written by Bret Kenwell in Petoskey, Mich.
Bret Kenwell currently writes, blogs and also contributes to Robert Weinstein's Weekly Options Newsletter. Focuses on short-to-intermediate-term trading opportunities that can be exposed via options. He prefers to use debit trades on momentum setups and credit trades on support/resistance setups. He also focuses on building long-term wealth by searching for consistent, quality dividend paying companies and long-term growth companies. He considers himself the surfer, not the wave, in relation to the market and himself. He has no allegiance to either the bull side or the bear side.