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It's important to remember the market itself, not the Federal Reserve, is what's been helping the U.S. economy, Jim Cramer told his Mad Money viewers Thursday. The stock market's slow churn higher has been having a positive psychological impact on investors, Cramer said, and that has nothing to do with the Fed.
Cramer said he doesn't understand the obsession some investors have with the Federal Reserve. They remain skeptical of the market's every move higher and assume that even the smallest of interest rate hikes will stop stocks in their tracks. This faulty logic has caused millions of people to miss over seven years of spectacular gains, he said.
Has the Fed had anything to do with the growth of Facebook (FB) , an Action Alerts PLUS holding? How about Amazon.com (AMZN) or Celgene (CELG) ? Of course not. It's exceptional management and secular growth that drives these companies.
The fact is that home prices are rising and the American consumer is feeling richer, spending more and even trading up in some cases. Nowhere was that evident more than in today's earnings, where discount jeweler Signet Jewelers (SIG) plunged while high-end Tiffany (TIF) soared. It was also seen in weakness from the dollar stores Dollar Tree (DLTR) and Dollar General (DG) .
So forget the Fed, Cramer concluded. All things being equal, the market itself is what matters most.
Apple Should Buy Sirius
Ever since its stock peaked at $135 a share last year, the markets just haven't liked Apple (AAPL) as much as before, Cramer told viewers. That's why he put on his investment banker hat to propose an acquisition that could jump-start Apple's stock.
Cramer proposed that Apple, an Action Alerts PLUS holding, use some of its $230 billion cash hoard and consider buying SiriusXM Radio (SIRI) .
Cramer's logic is simple. Sirius could bolster Apple's subscription revenue and give the company a foothold into the connected car of the future. Apple could also benefit by merging Sirius' original content and sports programming with Apple's own music offerings.
Sirius is pre-installed in 75% of all new cars sold today, Cramer said, and the company's 30 million subscribers tend to stick with the service once they sign up. Shares of Sirius are pricey at 23 times earnings, but that's still less than Apple spends buying back its own stock over a six month period.
Cramer admitted that a deal with Sirius is complicated by the fact that Liberty Media (LMCA) owns 60% of Sirius, but Liberty is known for making smart decisions.