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Cramer: Analysts Today Are So Negative

Thursday, 9 Feb 2012 | 7:33 PM ET
Cramer: Why All the Gloom & Doom?
Mad Money host Jim Cramer explains how gloomy analysts could be keeping the markets from surging ahead.

In his 32 years of investing experience, Cramer has never seen a gloomier group of analysts.

“I have never seen the research more negative, more skeptical, more cynical, more nihilistic, than it is right now,” the “Mad Money” host said Thursday. “Through a couple of crashes, several bear markets, periods of remarkable economic contraction and total chaos spanning 32 years, I’ve never seen anything like it.”

It’s like the analysts don’t even care or perhaps they are too afraid to recommend stocks for fear of getting burned, he continued.

To illustrate his point, Cramer referred to Whole Foods Market. After the grocery store operator reported strong earnings results after Wednesday’s closing bell, Cramer thought it would surely catch an upgrade because this already fast-growing company showed acceleration and a “remarkable level of execution.” The analysts didn’t see it that way, though. They thought the stock was already so expensive that it couldn’t go any higher, its valuation is stretched and the company’s new initiatives were already baked into the stock.

“When I read the research I wanted to scream,” Cramer said. “I wanted to say, ‘You knuckleheads, this stock’s at $80 and it’s going to $100 because people are going to pay up for it the way they would have done in the bull markets of the ‘80s and ‘90s. That was the pattern back then, and you’d better get on board because it’s going up without you.’”

Just as Cramer had suspected, the stock did pop on Thursday. And that’s just one example of how the analysts got it wrong.

Bottom line: Whether it be the Greek debt crisis or tension between Israel and Iran, Cramer knows there are worries out there. But he thinks the analyst community needs to wake up a bit because the current crop of analysts are about as negative as he’s ever seen.

Call Cramer: 1-800-743-CNBC

Questions for Cramer? madmoney@cnbc.com

Questions, comments, suggestions for the Mad Money website? madcap@cnbc.com

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