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Cramer Convinced Bernanke Worried About These 2 Laggards

Thursday, 23 May 2013 | 6:01 PM ET
The Forces Behind the Market
Thursday, 23 May 2013 | 6:00 PM ET
Mad Money host Jim Cramer dissects today's market action. Cramer says the U.S. has the strongest stock market, and that's why we could recover from today's action.

(Having trouble with the video? Click here!)

The Fed Chairman probably wouldn't admit it, but Jim Cramer is convinced he's worried.

There are two laggards that are thwarting the recovering and they lie at the very heart of the biggest issue vexing the US economy.

"We still don't have any real growth in small business hiring or commercial real estate," said Jim Cramer.

Although the market doesn't really trade many stocks that have to do with those two parts of the economy, if it did, Cramer is convinced Ben Bernanke would be buying those stocks hand over first.

That's because small business and commercial real estate are a crucial part of the recovery and they're currently not participating in the broader 'rally' underway in other parts of the economy.

"Let's say, for a moment, we actually had two stocks in the Dow Jones Averages, the Small Business Company and the Commercial Real Estate Company," Cramer hypothesized. They would be the worst performing stocks in the index. They would be the serial laggards. They would be at 52-week lows.

And QE4 would involve anything and everything to drive these 'companies' higher.

Federal Reserve Board Chairman Ben Bernanke
Getty Images
Federal Reserve Board Chairman Ben Bernanke

"Believe me, those two stocks, Small Business Co and Commercial Real Estate Inc, are the two invisible equities that Bernanke is worried about," Cramer insisted. "So worried that he's willing to let the other 30 stocks in the Dow roar higher if he can just get those two laggards to move."

Of course, that which precedes is a send-up, akin to Cramer's own Royal Nonesuch.

But it illustrates an important issue that confounds so many investors. And that is, the US stock market appears extremely robust while commentary from the Fed chief still suggests the US economy remains challenged.

It sends conflicting messages that many individual investors can't reconcile.

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Cramer says as you put money to work in the stock market, pay attention to what matters most. "American companies are doing extraordinarily well, they're increasing dividends, buying back stock and reporting terrific upside surprises," he said.

There may be more commentary from Ben Bernanke, as well as others, that suggests the economy is struggling. But all signs suggest the stock market is firing on all cylinders.

"The United States is the country with the strongest stock market on earth," Cramer insisted, "and I believe it will remain that way even if it doesn't have the strongest economy on earth."

Call Cramer: 1-800-743-CNBC

Questions for Cramer? madmoney@cnbc.com

Questions, comments, suggestions for the "Mad Money" website? madcap@cnbc.com

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