Smarter Money: Time Is on Your Side - TheStreet

Smarter Money: Time Is on Your Side

Everything looks to be on the bulls' side. It's just a matter of time before everyone realizes that.
Author:
Publish date:

The pros are angry and upset and making nothing. The individuals are angry, upset and staying away. Here we are, up huge from the lows, with lots of money being made in all sorts of areas, and people just don't like this market.

"So what," you say. What's to like about it?

Frankly, pretty much everything that I like historically, especially when compared to how everyone loved it 18 months ago.

The

Fed's

on the team. The valuations have come down a lot (they are still too high, but they have almost never been low in the last decade).

Inflation is still low. The companies are buying back stock and retiring stock at a high pace. Cash returns very little and will soon return less. Speculation, which is the bane of long-term performance, is on the wane.

I can understand the frustration of the pros. They either make money or the money gets taken away from them. But it is the ennui of the individuals that confounds me. The statistics, which show more online account openings and consistent growth, seem like lies to me. I get the feeling that every month more people

leave

this market as they can't figure it out and it doesn't let them make money instantly. Fewer people each day seem to be checking how they are doing because, for most, stuck in the same cohort of underperforming stocks, there is nothing of interest to check.

What breaks this logjam? I think it will be time. We have to have time for the Fed cuts to work. Time for people to realize they aren't making much money in cash. Time for people to understand that there is more to investing than just tech. And time to make the comparisons easier -- remember, we are still going up against monster good earnings because of last year's boom.

To leave this market now, though, makes no sense at all. The good is all ahead of us. Don't lose heart. History, the Fed, the bonds, the inflation outlook, even the year-over-year earnings will soon be on the bulls' side.

Wrong time to bail.

James J. Cramer is a director and co-founder of TheStreet.com. He contributes daily market commentary for TheStreet.com's sites and serves as an adviser to the company's CEO. Outside contributing columnists for TheStreet.com and RealMoney.com, including Cramer, may, from time to time, write about stocks in which they have a position. In such cases, appropriate disclosure is made. While he cannot provide personalized investment advice or recommendations, he invites you to send comments on his column to

jjcletters@thestreet.com.