Mad Money

Cramer: Cynicism doesn’t gel with fundamentals


Jim Cramer keeps hearing pros say 'that's not sustainable' when talking about almost any positive development in the market. And he just doesn't get why.

"It's an investment thesis that doesn't work," Cramer noted, referring to the sizable advance in the S&P 500 over the last 5 years. "Yet it remains prominent on Wall Street."

Largely the "Mad Money" host encounters the commentary after the latest earnings or economic data suggests the economy is doing relatively well.

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"When we got that strong durable goods number all I heard was that it was due to aircraft deliveries that were not sustainable, as if, somehow, aircraft deliveries were one-time only events, when, in reality, they are our biggest consistent export."

Cramer says it's as if the market just can't reconcile improvements in the economy. Or perhaps it doesn't want to.

"Cynics profit from shorting stocks," Cramer reminded, suggesting that some of the negative rhetoric may be self-serving; that is, an attempt by pros who are short to shift sentiment and drive stocks lower.

However, unless you're leveraging short-term moves, Cramer doesn't see any good reason to hold a broad view of the market that's negative, especially if you're an individual investor who's putting money to work for the long haul.

Not only are economic numbers relatively strong, he says the outlook from companies he's talked with on "Mad Money" have been very encouraging.

"Last week I spoke with Jack Koraleski, the CEO of Union Pacific, arguably the most important transport company in the United States. He described business as 'good,' citing strength in agriculture, industrial goods and autos."

Also Cramer added, "don't forget the strong 65.5 reading in the Chicago Purchasing Managers Report we got on Friday up from 63 in April."

And on Monday, ISM told CNBC it would revise its May manufacturing index higher, suggesting a faster acceleration in factory activity.

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Cynics immediately surfaced after all these events, arguing the bullish numbers just weren't sustainable.

But Cramer thinks they are. In fact, he thinks they could get even better and ultimately drive the next leg of the rally.

"Making long-term investment decision based on the concept of 'that's not sustainable' hasn't worked since the Great Recession of 2009," Cramer said. "Of course it never hurts to take profits, but don't look for an excuse to sell or worse, stay out of the market. There are plenty of positives. It's just that sometimes they get obscured."

Call Cramer: 1-800-743-CNBC

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