Tomfoolery—that is what this market has been reduced to. Jim Cramer just doesn't understand why things have become more complicated than they need to be.
Most of the companies in the S&P 500 actually benefit from lower oil prices. So how the heck are there 317 million Americans fooled into thinking that lower oil is bad news, leading to the S&P to close down on Tuesday? He thinks the market is acting foolish, and suspects that it is the hedge funds causing the problem.
From a consumer standpoint, if you fill up your gas tank twice a week and it used to cost $80 each visit when oil was above $100, it now costs $60. That's $40 a week pocketed, which amounts to $2,000 a year.
Cramer bets that if the government gave out checks for $2,000 to everyone, the market would soar.
The reality is that oil stocks have been huge leaders of the bull market. While they only make up 10 percent of the S&P 500, they have been big winners in the past and stick out like a bright light. When that light dims, it brings down the market with it as well.