Can you get more counterintuitive than what is happening on our screens? We are prepared to celebrate with a buying spree before, during and after a 50-basis-point hike that is meant to dampen ... a buying spree!!
The fate-tempting of the whole thing is astounding. Let's go buy some stocks to celebrate a
decision to try to stop us from buying stocks!!
I sure wish the Fed understood the dilemma that we fund managers find ourselves in on days like today. We now feel that things are working perfectly again, inflation being reined in, the Fed working its magic and now, we have no choice but to take stocks back up to where the Fed will be unhappy.
But that's what happens when you use an instrument like short rates to make policy in a stock market that frankly doesn't, short-term, give a hoot until rates get to much higher levels.
So Mr. Chairman, sorry, we have to do the opposite of common sense, because we have to beat all of the other guys who are doing the opposite of common sense, or else they will take the money away!
Don't forget my chat rematch tonight with Bill Fleckenstein on Yahoo! at 5 p.m. Be sure to
register (it's free and easy)!
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