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NEW YORK (TheStreet) -- We're nowhere near the level where interest rates can hurt the economy, Jim Cramer told his Mad Money viewers Tuesday. That's why he's using the bond-induced weakness in the markets to do some buy, buy, buying.
When positive things happen, stocks tend to go higher. That may seem like a simple notion but for many bond traders, the fact that European interest rates are creeping higher because, well, things are actually getting a little better, can only mean "Sell everything."
The fact remains that for the industrial, chemical and paper stocks, a weaker Europe has only led to repeated earnings estimate cuts. But now that Europe is on the mend, estimates can finally be raised. A stronger Europe will also buoy China, which sells a sizable portion of its goods there.
Cramer reminded viewers that it's not the direction but the velocity of interest rates that matters. As long as rates creep up slowly, our economy and stock market will do just fine.
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"Sometimes you just have to believe," Cramer told viewers. That's not always easy because there are skeptics at every turn.