Jim Cramer was convinced last week that a jump in small business optimism would have no influence on the stock market.
"I was wrong," the "Mad Money" host said.
The monthly National Federation of Independent Business survey of small business optimism report this week indicated that December had greatest surge in optimism since 1980, when Ronald Reagan was elected.
The survey polled 619 businesses, and showed a jump to 105.8, the highest since 2004. The survey was heavily skewed toward the notion of expansion with the notion that more optimism leads to more hiring and job creation, which translates into economic improvement.
"I can't emphasize how important this all is because right now there is a perception in the media that there is nothing but trouble ahead with Trump's nominations, with his plans, with his style," Cramer said.
This could be true, but the survey indicates that Main Street likes what Trump is bringing to the table. Cramer suspected this means good things for lending, building and buying of plants and equipment, too.
For years, Cramer heard that the market liked gridlock in Washington. How that mindset is being called into question. Yet, if the economy starts to ramp up, that means there are a different group of stocks to focus on.
"We need those to rally because they are part and parcel of the new bull market, the one that started after the election, as opposed to whatever we had before, which was limited to the household products companies and FANG," Cramer said.
Another piece of better-than-expected news was the sale of various divisions in Valeant. With $30 billion in debt, the $2 billion from the sales won't cause much of a dent, but Cramer says it's a start. Anything that helps to chip away at a huge negative makes investors feel better about committing capital.
"As much as we have rallied on the hopes of the Trump administration's super pro-business agenda, the fact is that not everything needs to be viewed through the prism of wars over the cabinet appointments or jabs in the media about the failed upcoming presidency of Donald J. Trump," Cramer said.