Mad Money

5 market theories Cramer thinks are wrong

Key Points
  • CNBC's Jim Cramer on Wednesday debunked five recent Wall Street sentiments that he doesn't share.
  • "Lies thrive on Wall Street, either thanks to ignorance or thanks to money managers with a vested interest in pushing stocks lower, but I'd much rather bet on the side of the truth," Cramer said.
The dichotomy between truth and fiction plays out every day in the markets, says Jim Cramer
VIDEO1:4701:47
The dichotomy between truth and fiction plays out every day in the markets, says Jim Cramer

CNBC's Jim Cramer on Wednesday named five sentiments in the air on Wall Street that he doesn't think hold much weight.

"Lies thrive on Wall Street, either thanks to ignorance or thanks to money managers with a vested interest in pushing stocks lower, but I'd much rather bet on the side of the truth," Cramer said. "And right now, the truth is much better than you might think considering the recent action, and I wouldn't find myself bailing here. Patience is warranted."

  1. Banks: Cramer doesn't believe that weaker bank stocks signal struggling companies. He said he feels the majority of banks are actually performing well, even if they aren't aggressively giving out loans.
  2. Yield: According to Cramer, investors shouldn't fear the Federal Reserve's 10-year Treasury yield of 4.2%. He said the rates don't alarm him because it suggests a return to normalcy after inflation, not doom.
  3. The Consumer: Cramer disagrees with the sentiment that the consumer is getting weaker, citing the example of the strong sales figures from companies like Amazon, TJX and Home Depot. Instead, he said, the consumer is a "changed beast," with spending habits that may be different from the pre-Covid version but is not necessarily weaker.
  4. China: While he is concerned about China's economic troubles, Cramer said he doesn't think they will affect the U.S. economy as drastically as others may fear.
  5. Tech: The tech market won't be down forever, Cramer said. Just because August has seen tech stocks slide doesn't mean they'll stay there, he said.
Jim Cramer seperates fact from fiction in the current market
VIDEO11:0511:05
Jim Cramer seperates fact from fiction in the current market

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