What the Media Is Missing
Read any number of news articles over the past week, Cramer said Tuesday, and you’d see nothing but doom and gloom about foreclosures, airline weakness, housing woes, commercial mortgage worries and a lack of infrastructure jobs. The logical conclusion then is to assume that the related stocks must be sinking – and fast.
But that’s not the case, Cramer said. In fact, Boeing , Caterpillar , Terex , US Steel , AK Steel , KB Home , Pulte Homes and Lennar are all “going on pretty strong.”
And consider commercial real estate, the expected next bust market. Now we’ve got Brookfield Properties and Simon Property Group fighting over who gets General Growth Properties. As Cramer said, these negative articles are telling one story, but the tape tells another entirely.
The negative bias may have made sense at one point – say, at the worst parts of the depression/recession of late 2008 and early 2009 – but not anymore. Not with much better economic and company news coming out month after month. And given these changing conditions, Cramer said, “Maybe the bias should change.”
“Until it does, you should always expect,” he continued, “pessimistic articles or stories that twist the facts in order to be negative.”
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