We’ve come a long way, baby.
Cramer drove that point home on Friday, feeding off the positivity he found in the Heartland. Mad Money had escaped New York’s negativity and landed in the Sooner State, with The University of Oklahoma Price College of Business hosting the latest Back to School Tour show.
Think back a year and try to remember the precipice on which we stood, staring down the failure of the Western financial system and the death of American business. What about now?
Industrial companies like Cummins , 3M and Caterpillar have rebounded to report “remarkable quarters,” Cramer said. The banks, once threatened with nationalization, have scraped their way back to viability. See: Goldman Sachs , Bank of America and Wells Fargo . Both weakened corporations and consumers were supposed to kill the technology business, but IBM is now flush with cash. Intel and Microsoft , like the industrials, delivered “monster quarters” of their own. And Cramer can’t say enough about the power of Apple , the company and the stock.
Speaking of the consumer, retail was written off just the same. Macy’s , J.C. Penney , J. Crew and Home Depot had been shunned in favor of Family Dollar . But that’s not the case anymore. In oil, the price of crude dropped $100 a barrel, while natural gas dropped to as low as $2.41. Now Cramer sees an industry “that’s growing, ready to hire.” In fact, he thinks nat gas could solve, at least in part, the US employment problem.
We have stabilized, Cramer said, albeit at lower levels. And despite the Dow’s 250-point shellacking on Friday, he’s optimistic about the market’s prospects. After all, it was that optimism that helped to recognize the Dow’s early March lows, allowing Mad Money viewers to capitalize on one of the biggest bull runs in history.
Expect another 5% pullback from the market’s present levels, Cramer said. So, yes, investors can take some profits while they have them. But they shouldn’t cash out entirely. Instead, they should recognize how far we’ve come.
“I want everybody to look back at the 52-week lows of their stocks,” Cramer said, “to remind themselves of the miraculous return of equities from the abyss we toiled in just one year ago.”
Cramer's charitable trust owns Bank of America, Goldman Sachs, Home Depot and Wells Fargo.
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