We really have to stop reading things into Alan Greenspan's speeches. The old jokes about how he speaks in gobbledygook and Greenspan-ese simply don't hold up anymore. Either the guy changed his speechwriters or he has the wife, who is really smart, going over the texts beforehand.
Whatever. Let's stipulate what he says:
1. The economy is fabulous.
2. Parts of the economy are too hot, and we will raise short-term rates until they cool off.
3. The Internet is a deflationary friend.
4. The part of the stock market that is way too high may not be high a few years from now if all of the new tech works out.
5. I wish the stock market would behave and be a little less animal-spirited but I won't pull the plug because it creates a lot of wealth.
6. If we get some slower data, I will be a lot less grumpy about the stock market and short-term rates.
He pretty much says the same thing in one form or another every time he talks. He is getting more specific about the stocks that could make things too hot for us, but he knows better than to waste his capital trying to knock down the
We have searched every speech before it comes out looking for deviations from these six principles since the tightening began.
We will let you know if we see anything different. Otherwise, presume that the speech is in sync with these and proceed as planned with your buys and sells in the stock market.
James J. Cramer is manager of a hedge fund and co-founder of TheStreet.com. At time of publication, his fund had no positions in any stocks mentioned. His fund often buys and sells securities that are the subject of his columns, both before and after the columns are published, and the positions that his fund takes may 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 at