Mad Money

Cramer: Dimon does the bull a solid

Dimon's shareholder letter a must read

(Click for video linked to a searchable transcript of this Mad Money segment)

JPMorgan CEO Jamie Dimon just released his annual shareholder letter and Jim Cramer says it's a must read!

From Dimon's insights, the "Mad Money" host concludes that investors and the financial markets, broadly, are scarred.

"Although he doesn't actually say it, the note implies that the massive and greedy screw-ups by businesses, particularly bankers, have led to a backlash against capital," Cramer said.

Because of that backlash, Cramer believes there's an underlying sense of fear in the market.

And believe it or not, Cramer says that's bullish.


Jamie Dimon, chief executive officer of JPMorgan Chase & Co.
Jason Alden | Bloomberg | Getty Images

Ironic though it may be, Cramer believes the backlash has generated a relatively large number of bears in the market, and in turn, that's a positive.

That is, Jim Cramer firmly believes that in order for stocks to rally, there must be skeptics in the market, too. There must be investors willing to take the other side of a trade. When bullish sentiment becomes too pervasive, it often leads to irrational euphoria and an imbalance among buyers and sellers.

But because of the skepticism outlined in Jamie Dimon's letter, "I think there is too much pessimism in the market for it to completely roll over," Cramer explained.

Therefore, if you're holding stocks, Cramer thinks Dimon has done you a favor, without ever intending to do it.

Dimon's shareholder letter suggests confidence is low and fear of failing is high.

"And that, more than anything else, is why stocks can go higher still," Cramer said.

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Now make no mistake, these insights are Jim Cramer's interpretation of the Jamie Dimon letter. Comments made by the JPMorgan CEO were largely about his bank's position relative to the broader industry.

Nonetheless, Cramer believes it's just these kinds of documents that can provide valuable ideas for investors. "And when taken in its entirety, Jamie Dimon's letter to shareholders is a document that aids the bull," Cramer said.

Call Cramer: 1-800-743-CNBC

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