The Fed, The Market & The Economy
Cramer is toying with a new slogan: “Sell in May, Hang Yourself.”
The market is just remarkable, Cramer said this afternoon during his usual Stop Trading! appearance on "Street Signs" with Erin Burnett. The Federal Reserve was expected to leave rates unchanged at today’s meeting – and they did – yet people are buying anyway. “There isn’t anything that people don’t like from the Fed,” he said.
Cramer’s stance is still an optimistic one with regard to the economy, so long as people are staying away from purely domestic companies. If things were so bad, he said, a lot of companies that are making money simply wouldn’t be.
Expect the Dow to reach 14,500 by the end of 2008, Cramer has said before, and he’s sticking to it.
Cramer on Cisco
Everyone keeps saying that Cisco blew it with their quarter, but Cramer is getting tired of hearing that. The quarter was fine, he said, it was a “great call,” and there’s just too much misinformation being passed around.
The Cable Indicator
Erin Burnett interviewed Dick Parsons, the CEO of Time Warner , yesterday and she asked him if he believed that the last bill people default on in a weak economy is their cable bill, making it an unlikely-but-accurate economic indicator. The Fed actually called Parsons to ask the same question about cable bill delinquencies, he said. Parsons told Burnett he thinks the economy is good, that people are still paying their bills - and that's a good sign if the so-called "cable indicator" is a true bellwether of a weakening economy.
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