Six months ago, Eric Bolling and Jim Cramer of “Mad Money” made a $50,000 bet on which sector would be the hottest one of 2007. Cramer bet on the financial services Financial Select Sector SPDR (XLF), and Eric recommended the oil and gold sectors.
Halfway through, the Admiral is on top. Cramer is down 0.57% since the January call, while Eric is up 22.04%
“When the Fed starts cutting, you’re going to look real bad,” Cramer told Eric. “But in the interim, congratulations.”
When oil used to rip higher, it would typically be a recessionary event for equities, Eric said. But with so much of the S&P rooted in the oil and gas sector, a bull market in oil is actually good for the rest of the stock market. Now oil and financials can both run at the same time.
There’s still six months left in the bet and, in this market, it could swing either way.