The Rally Is Just Starting
If you didn’t have any money in the market during yesterday’s rally, it’d be easy to think you missed out. But that’s just not the case, Cramer said during Wednesday’s Mad Money.
He urged viewers to think longer term. Investors who came in a few days late after the Fed made a much-needed rate cut in 1990 to get the U.S. out of a recession still had the chance to profit. After all, the Dow is up 10,000 points since then.
“Yesterday’s rally was nothing – and I mean nothing – compared to what’s to come,” Cramer said. “Now is the time to buy.”
So don’t believe the bears who missed the move or shorted the market or still say stocks are headed down. As far as Cramer is concerned, yesterday’s 50-basis-point cut had a measurable impact. Automakers can now offer better financing, homeowners can refinance their mortgages, and consumers willing to spend more can give a boost to struggling retailers.
That’s good news for Kohl’s, Target and even Sears. And now banks like Wachovia, Downey Financials and FirstFed Financial should see higher margins thanks to the rate cut as well, Cramer said. He also gave a nod to high-yielding stocks. Think AT&T, Verizon, Con Ed or Genesis Lease.
Cramer admitted there are still issues for the economy – high oil prices, the weak dollar, inflation, but he said these problems are strictly theoretical in relation to stocks right now. And on Mad Money, “we don’t care about theory,” Cramer said. “We care about practice. The practice of making money.”
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