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NEW YORK (TheStreet) -- U.S. stocks posted a “fantastic rally” on Thursday, Jim Cramer told his Mad Money viewers, pointing out the Nasdaq hit a new all-time high in the process. He attributed the rally to several factors, one of which was the Federal Reserve.
On Wednesday, the Fed released its statement that while the economy isn’t doing great it’s improving. “That opened the door for this magnificent rally” and money managers had to start buying more stocks, Cramer said.
The idea of lower rates for longer also prompted investors to sell the U.S. dollar, which is good for multinational companies such as Boeing (BA) and and 3M (MMM), a holding in Cramer's charitable portfolio, Action Alerts PLUS. As long as the dollar doesn’t begin to rally, many companies will benefit come earnings time.
Then there’s Greece, Cramer said. Investors went from assuming a deal would get done to thinking there would be no deal and eventually concurring that a Greek-less eurozone wouldn’t be all that bad — all in one week! Whatever ends up happening, investors seem to be prepared for it all, he said. As uncertainty fades from investors’ worries, the market has a better chance to stand tall and continue higher.
Cramer then looked at investor confidence, which, according to the latest AAII poll on Wednesday, was at its lowest point since October. He reminded investors that at that time, the market was at a recent low and would go on to post enormous gains after registering such a low sentiment result.