A Tip of the Hat to Jim Cramer
Jim Cramer’s great visibility and many predictions make him an easy target for critics. When one makes a lot of calls, some will be wrong.
This one was excellent and important. On October 20th, Cramer wrote on his paid site, Real Money:
But remember why we have this rally. Profits
are great. Sales are great. Buybacks are voluminous. Rates are steady.
Oil keeps sinking. These catalysts aren’t going away, and we know that
from the earnings we have had already.
I have listened all day to people on TV who admit that the
market is much stronger than they thought, but they now add that’s why
we are ripe for a selloff.
I see it the other way. If we get a big selloff either before
or after election — the latter will be pretty much definite if
Congress goes democratic — the money will keep flowing in and you will
catch a bid down a couple of a percent.
That’s how I see it, no more negative than that.
Some credit is due for this call, and the logic is still worth consideration. It sure feels like there is plenty of money on the sideline, trying to get in.