Cramer: Obama's Speech Was 'Pitch Perfect'
As Cramer watched President Obama’s State of the Union speech Tuesday night, he was surprised by the comments streaming simultaneously on Twitter. Some smacked of “wiseacre skepticism” or even “deep cynicism,” he said, but Cramer felt anything but.
“As someone whose only priority is helping you try to make money in stocks,” he said during Wednesday’s “Mad Money,” “I thought the state of the union last night was pitch perfect.”
He praised the president for describing the stock market’s resurgence as a sign of economic health—right at the top of the speech. Cramer also said he liked the focus on harnessing private business to become more competitive, especially when it comes to beating China. Just as the U.S. beat Russia in the Cold War, we’ll out-compete and out-innovate China in the business war.
Obama made no rant about social justice, though there was a hat tip to Tunisia. There was no talk of health care for all or income redistribution. Obama even embraced the Bush tax cuts, with the understanding that they couldn’t be permanent. And he captured perfectly the aspirational undercurrents of this country, making it known that Americans don’t want to merely get by, they want to prosper.
As far as Cramer’s concerned, Obama proved he’s not a Social Democrat, but rather a Capitalist Democrat. And this coming from someone who once called the president’s stimulus plan “the greatest wealth destruction of our lifetime.” So viewers have to know that the White House is finally doing something right—at least in Cramer’s eyes.
Still, that didn’t prevent the same hypercritical Twitterati from slamming President Obama. But Cramer wondered what more Obama could have done to assuage this group. Start the whole speech off by calling for a run to Dow 14,000? Tell the American public he thought the S&P 500 was terribly undervalued? Make a buy call on the declining materials stocks?
And it’s not like Cramer can simply ignore the president’s change of focus, one that will in fact help the markets. There were no individual stock takeaways there, but the overtone should be enough to generate some much-needed multiple expansions. Not the contraction we saw during the tenure of House Speaker Nancy Pelosi during Obama’s first two years in office. Now investors most likely will be much more willing to pay more for stocks because they know they’re being backed by 1600 Pennsylvania Avenue.
As Cramer always says, the stock market looks forward to the future. And President Obama last night seemed to give investors some of his trademark hope on that front.
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