Cramer: 6 Lies The Bears Are Telling You
Web Editor, "Mad Money"
The negative spin seems never-ending, Cramer said Wednesday, with the bears dismissing every bit of good news we get. It’s almost too easy because Wall Street’s best and brightest are never taken to task when their theories about the market are proved wrong. But there’s a real cost to this lack of accountability, namely the Mad Money viewers who may be scared out of stocks as a result of this, well, fear mongering.
“If you listen to them,” Cramer said of the bears, “you are missing some tremendous opportunities.”
In order to protect the rest of us from this wave of pessimism, Cramer exposed the six big lies that bears are telling. Read on if you’ve been feeling a tad timid of late. It might help you get your mojo back.
Jon Corzine lost the New Jersey governor’s mansion because of local, not national, issues. The bear talking points on this race, where Republican Chris Christie beat the incumbent Democrat, is that voters were mad about Corzine’s property-tax policy. Not so, said Cramer. He saw it more as a referendum on the former ruling party’s focus on health care at the expense of job creation. And with the state’s executive branch going from blue to red, the Dems might take the hint and back down from their ambitious reform plans. The market, which saw health-care stocks rally today, may be expecting this. Cramer said he likes WellPoint in this group.
Warren Buffett doesn’t know what he’s doing. The world’s top investor bought Burlington Northern Santa Fe, and the bears responded with a hearty pshaw. Cramer did a bit of scoffing himself, saying the move was “a major statement” about the strength of the US economy, given cyclicality of BNI. If Buffett believes, maybe we should, too.
Be worried – commercial real estate is now part of an asset bubble. That’s funny, because these very same people have been predicting the sector’s collapse. How can they get away with such a glaring contradiction? Because when you’re a bear in this market, Cramer said, “You can always have it both ways.”
October’s bullish retail sales will be a product of easy compares. Last month’s great numbers won’t be so great because the same period in 2008 was weak. At least that’s the bears’ common wisdom. Cramer said he’s expecting a collective shrug when retail sales hit the wires on Thursday. Use any dip in the stocks as an opportunity to buy.
“Cash for Clunkers” will steal demand from future sales. Really? Because October showed strong demand, Cramer said, and that federal program ended on Labor Day.
The housing recovery isn’t real. The bears once credited the federal homebuyer tax credit for boosting sales, saying they’d stall once the credit expired. But since the government aid’s been extended, the bears haven’t said a word. They also spun the existing-home sales number as negligible, pointing to supposed shadowy inventory lurking on banks’ balance sheets. Cramer called this a “truly awful analysis that refuses to see good things for what they are – good things.”
Watch out for “the constant drumbeat of skepticism” that’s come from Wall Street since the early March lows, Cramer said. It could cost you. As far as he’s concerned, the bears’ negativity has been “one of the biggest money-losing strategies I have ever seen.”
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