Cramer: It Will Be Hard to Stop This Rally
Behold this rally, Cramer said Tuesday. The "Mad Money" host likened it to a worldwide relay, which started in Shanghai, continued in Japan, went to Europe and finished strong in the USA.
"We haven't seen this kind of global move for ages," Cramer said, noting that China's economy is still growing despite inflation. Increased demand for commodities in China signals things are turning around.
At the same time, industrial demand is increasing in Japan, which had suffered natural disasters in March. The country was so badly hurt by the earthquake and tsunami, Cramer said it will take a massive rebuild to get the country's economy going again.
In Europe, Greece's debt troubles are now being put on the backburner, as the International Monetary Fund is dealing with the Continent's monetary troubles. Although Europe is essentially kicking the can down the road, Cramer thinks there will be come reforms over time. He said it could involve a takeover of the Greek treasury, which would strengthen the euro.
A strong euro means a weak U.S. dollar and some commodity gains, Cramer noted. This is a hedge-fun led rally, though, because they're the only ones left trading. With the world's economies perceived as strong because of higher oil, the hedge funds perceive strength in the U.S., too. Yet the higher commodities go, the worse the U.S. economy will be, but until commodities reach a drop dead level, Cramer thinks the market will soar.
"A worldwide four-way rally is a difficult move to stop, as you can see from the market's inability to be rocked too much by what now amounts to nothing more than local data," Cramer said. "It's a triumph of the global exchange will and this rising tide is strong enough that it has the power to lift stocks which trade in the incredibly leaky U.S. boat."
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