Sometimes it is hard for investors to see clearly what type of environment cultivates higher stock prices. With the averages headed higher on Tuesday, Jim Cramer went down the list of what makes this market so special right now.
"When you have the basics working for you, not against you, investors find reasons to throw money at the market. And right now it sticks on the stocks with the best international stories," the "Mad Money" host said.
The first positive sign Cramer pointed to was low inflation. Investors love low inflation, as that means the long-term value of stocks are going to be preserved. High inflation will erode value because earnings will have less purchasing power.
The employment number on Friday signaled to Cramer that there was no inflation in the system besides mandated inflation that comes from higher state and local minimum wages.
"Tame inflation means that all stocks are worth more, so even if you hear that the stock market is expensive,it might not be as expensive as it seems given inflation isn't eroding the value of the gains you get from higher stock prices of future dividend payments down the road" Cramer said.