Strong demand is the one thing the market is missing, Jim Cramer says.
"Among the many reasons why we have developed this vicious volatility of late is the belief that demand is waning in many industries just when the Fed wants to tighten, hence why we ultimately drifted lower again today," the "Mad Money" host said.
Cramer heard the concerns about lack of demand everywhere at CNBC's Delivering Alpha conference this week. It seemed to him that the vast majority of speakers had written off the prospect of robust growth in demand, either in the U.S. or overseas.
"I view things differently. While I have a macro worldview … I am a bottoms' up guy, a person who looks at demand company by company and makes an aggregate case based on the pastiche that I can put together," Cramer said.
Unlike many investors, Cramer does not consider oil a proper barometer to measure the economy. When U.S. inventories drop, crude has a fleeting rally, and then a decline when investors recognize a glut still exists. Sometimes, crude even rebounds when countries that want prices higher spread rumors of an emergency OPEC meeting to freeze production.
"In other words, the price of oil is manipulated, it's bogus, and it has little-to-nothing to do with real demand that we need to calculate to make our worldview, even as it is the metric of choice for so many fund managers," Cramer said.