What's the bull case right now? Try this one on for size. The bonds need only to digest the supply that's coming on stream in order to go a little bit lower in yield (higher in price.) At the same time, we should see a bit of a cooling off in the economy courtesy of the tap-out of tax returns. A combination of lower interest rates and a cooler economy could drive people back to interest-rate-sensitive stocks and the drugs.
So what am I doing? I am socking in some drug stocks that don't have problems with fundamentals (meaning I am avoiding the ones that are down today), and I continue to buy the banks, some of which have sold off dramatically in the wake of the lukewarm reaction to the
And am I rushing in to take advantage of the weakness in personal computer stocks? Nope. I can't warm up to companies that won't let me warm up to them, and when I call companies in this industry, they just aren't that bullish. I would much rather be in companies that got whacked Friday with good fundamentals than in ones that are getting whacked today with questionable fundamentals. If I want tech, I take Net and telco tech, many of which are speaking at a
telco tech conference this week. I don't need the house of pain that computer tech is delivering right now. That's for the masochists.
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 the stocks mentioned, although holdings 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 at