When the Federal Reserve speaks, investors listen. Jim Cramer noticed a change in the leadership groups within the stock market and prepared investors for a big shift.
"If the Fed has decided that the economy is healthy enough to handle a rate hike or two, then the big money dusts off the playbook and goes to work buying the stocks that have historically worked at this point in the cycle — regardless of the near-term fundamentals," the "Mad Money" host said.
Banks benefit the most from a rate hike. When rates rise, banks take deposited cash and invest it risk-free at higher short-term rates. Thus, earnings per share for banks go up.
"Do not ignore this move in the financials …The combination of higher net interest margin — what they earn on your deposits — and lending itself spells a dramatically different earnings comparison versus last year, and that almost always leads to higher stock prices," Cramer said.