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Investors who only focus on rising interest rates are going to miss out on opportunities, Jim Cramer warned his Mad Money viewers Tuesday. There's a lot more going on in the stock market than just the Federal Reserve.
Cramer said there is an entire generation of younger investors out there -- call them the quantitative easing generation -- that only know a world of low interest rates. But Cramer reminded everyone that stocks can do exceptionally well when the economy is humming and interest rates are on the rise.
Sure, super-low interest rates are a win for dividend stocks, and they allow companies to borrow money on the cheap for big stock buybacks and to make big acquisitions. But that doesn't mean the party ends with the first or second quarter-point rate hike.
This is especially true with Donald Trump heading to the White House. Unlike the current administration, which favors labor, the environment and the consumer, Trump is pro-business through and through, Cramer said. Gridlock in Washington may finally be over, which only makes stocks more compelling.
Instead of being on a Fed-induced respirator, imagine an economy that could breathe, and grow, on its own, Cramer concluded. That could restore the luster of stocks as an asset class.
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