Don't look now, but money is being made in this market. It's just not being made where it has been. And that's just fine with me. For too long, unless it had .com or got endorsed by
, it just didn't matter. For too long great companies have done great things and their efforts have been completely overlooked.
Tuesday I made money in the strangest places. My banks. My savings and loans. My food and beverage stocks. Stuff that allows you to sleep at night.
Can it last? I want to be optimistic about this possible rotation. If the bond auction goes well, there might be some legs to it. Heaven knows there is value away from the
Janus Twenty (I am not picking on them, it is just that everybody owns the same 20 stocks and it happens to be the Janus 20). That said, these stocks lack the power of tech when tech gets into gear. That's undeniable.
Rallies in these ugly ducklings can be so fleeting that yesterday I was penning a piece about how the
was up substantially even as the market was down. But before the piece could get to you, I killed it because a massive sell program erased the gains and then some. Still, now that the .com mania is dead -- and companies will begin to be judged on fundamentals -- we will discover that the market is paying too little for some kinds of growth, notably financial and industrial, and way too much for other kinds, mostly technological.
The shift is happening, right now. It is a good shift because with it will come a broadening of the advance/decline line and of the new highs. Funny, in the end it always comes down to supply and demand. You get these "rotations" because there is not enough supply in certain areas.
Take Tuesday. Despite the horrendous selloff, it was actually hard to buy some of the cosmetic, beer and savings and loan companies. Everybody who wants out of those is out of them.
You could buy all the
you wanted. And all of the
. And all of the
. As well as all of the
and just about everything else that's been bid up to stupid levels.
James J. Cramer is manager of a hedge fund and co-founder of TheStreet.com. At the time of publication, the fund had no positions in the stocks mentioned, although 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 an email to firstname.lastname@example.org.