It was approximately one year ago that the stock market was fearfully hanging on every word uttered by the Federal Reserve. Jim Cramer says the market has changed its tune.
"Now we don't even bother to listen to the Fed governors and presidents as they speak. Our new attitude? Give me rate hike or give me death — or at least death to the bull," the "Mad Money" host said.
Suddenly it seemed to Cramer that the market can now shrug off startling news from overseas that would have caused a sell-off not that long ago. The market barely blinked when Italian Prime Minister Matteo Renzi announced his intention to resign on Sunday night.
With the dollar as strong as it is right now, Cramer would have told investors to run for the hills. Typically a strong dollar means earnings estimates are too higher and exporters are less competitive. Instead, the market has completely ignored the dollar's strength.
"Is that healthy? I would say not. But if you are selling off a strong dollar, you would have left this market a month ago at much lower levels," Cramer said.
Instead, the strong dollar has been a pro-growth bargain because of the radical rise in interest rates. In the past, anything that sends interest rates soaring would cause a sell-off. But in this case, interest rates are rising because there is more demand for money.
"The bottom line is that real growth breeds a real shift in what stocks investors like," Cramer said.
Cramer noted that investors favor industrials right now, and financials will do better with higher rates.
"Maybe we should start thinking again that what is good for the American people — growth — is good for stocks," Cramer said.