On a hideous day like Wednesday on the market, Jim Cramer likes to remind investors that there are still a few positives lingering out here. It is just a matter of willing to do the work to find them, such as the case with low interest rates—a big positive for the housing sector.
"The idea that rates could be headed lower, perhaps a lot lower, is something to hang your hat on. Especially at a time when many people still believe that the Federal Reserve will try to tighten in the near future, despite the fact that the global economy is in turmoil and a rate hike would do serious damage to the market," the "Mad Money" host.
That is why Cramer decided to take a closer look at what the charts predict for interest rates with the help of Bruce Kamich, a chartered market technician, professor at Baruch College and colleague of Cramer's at RealMoney.com.
First, Kamich took a look at the long-term chart of the yield for the 10-year U.S. Treasuries, a key benchmark for long-term interest rates in the past 50 years. Kamich pointed out that Treasury yields have been on a multidecade downtrend, and will continue to slide, despite talks of a Fed rate hike.
The next stop was to take a look at the yield from Moody's Triple-A bond index, another important benchmark for interest rates that is often used for the highest quality bonds out there. Kamich liked this chart because it allowed him to look at what has happened to high-quality bonds in the past 90 years.