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Why Are These Gains Getting Dissed?

Jim Cramer
Jim Cramer

The S&P 500 index extended its rally to a fifth day and the Nasdaq also closed higher Thursday, but the Dow Jones Industrial Average broke a four-day winning streak Thursday as investors digested a better-than-expected jobless claims report against waning optimism that the European Central Bank might finally tackle the region's debt crisis in a meaningful way.

Nevertheless, “Mad Money” host Jim Cramer noted that some on Wall Street have objected to the rally, if they’ve acknowledged it at all.

“People don’t believe that a rally deserves to happen when there’s so much misery locally. We have almost no employment growth,” Cramer said. “It just doesn’t seem possible that this level of employment can sustain the current levels of stock prices.”

In Cramer’s opinion, though, that particular objection is bogus for a few reasons. To start, he noted stocks started rallying when jobless claims started to fall. Furthermore, Cramer pointed out that Wall Street is trading stocks, not jobs, and there’s a big difference.

“You want your stock to go higher? Then you sell more product with fewer people,” Cramer said. “Firing, not hiring, gets your company’s stock up if you don’t have a lot of revenue growth.”

Meanwhile, Europe’s debt crisis has been another knock on the rally, Cramer said. As it turns out, though, Cramer said many European markets have been outperforming the Dow while other European markets are tied or barely down.

“So ask yourselves, if the European markets are doing so well, why the heck should our stock market be kept down by them?” Cramer asked. “If Germany’s up 18 percent with that negative data, shouldn’t we at least be even with them, and not way behind them as we are right now?”

All things considered, Cramer recommends investors “immunize yourself against this nonsense” by investing in dividend-paying stocks.

Read on for Cramer's Top Dividend Stocks

—CNBC.com contributed to this report

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