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A Few Rules About Fed Easings

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Let's remember a few rules about


easings for safekeeping.

One is that the first ease is not the last ease -- it's the start of something bigger. Always is.

Second, when the market sells off after disappointment on the ease, you have to buy, not sell.

Third, you have to believe, at least momentarily, that it does matter. I know when the first ease came I wrote a half-dozen pieces about how much it matters. Conventional wisdom holds that it doesn't. The talking heads say it doesn't.

It always does.

Those who stay bearish during the period where the Fed is on your side, those who fight the Fed, are always wrong. I learned this from

Marty Zweig

, who demonstrated it over and over again. When the Fed starts easing, get long or get out of the way.

Finally, don't believe any company or manager or pundit who says that a Fed ease doesn't eventually help the economy. That incremental decision to do something to boost confidence creates the marginal purchase that may make the


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It is so tough to believe in anything when there are millions of hype-sters and voices and technicians and analysts saying this and that about what the market will do. Sometimes you have to fall back on rock-hard simple truths. One of them is that when the Fed is easing, you buy stocks. You buy financials and cyclicals and tech.

And you buy them fast. Because the big boys know this. If you had gone fishing Thursday afternoon, you missed one of the biggest rallies I have ever seen. All because of a quarter-point move.

That's the way it always is. That's the way it always will be.

James J. Cramer is manager of a hedge fund and co-chairman of

At the time of publication, the fund was long Cisco, though positions can change at any time. Under no circumstances does the information in this column represent a recommendation to buy or sell stocks. Cramer's writings provide insights into the dynamics of money management and are not a solicitation for transactions. While he cannot provide investment advice or recommendations, he invites you to comment on his column by sending a letter to at