Last night Jim talked about how, bizarrely, lower oil prices seem to help tech stocks.
It doesn't make sense, but the evidence is there. Just take a look at the amazing runs that Google, Apple, Intel, Microsoft, Research in Motion, and Amazon, have had since the beginning of last week.
Earlier I wrote about the possible demise of the summer tech rally that would come every year virtually without fail, with RIMM looking like the last man standing this season. Looks like I was wrong.
Part of the story here is that a lot of these tech names are high-multiple, high-growth stocks that are being valued based on their earnings in 2010, 2011 or even as far out as 2012. Inflation makes these future earnings less valuable, but as Jim pointed out last night (very late at 11p ET, but we're team players who don't mind being preempted by the Olympics), we're now seeing deflation on almost all fronts thanks to the collapse of commodity prices. That makes the future earnings of these high-growth tech stocks more valuable.
Long live the summer tech rally?
Cliff Mason is the Senior Writer of CNBC's Mad Money w/Jim Cramer, and has been that program's primary writer, in cooperation with and under the supervision of Jim Cramer, since he began at CNBC as an intern during the summer of 2005. Mason was the author of a column at TheStreet.com during 2007, which he describes as "hilarious, if short-lived." He graduated from Harvard College in 2007. It was at Harvard that Mason learned to multi-task, mastering the art of seeming to pay attention to professors while writing scripts for Mad Money. Mason has co-written two books with Jim Cramer: Jim Cramer's Mad Money: Watch TV, Get Richand Stay Mad For Life: Get Rich, Stay Rich (Make Your Kids Even Richer). He is 100% responsible for any parts of either book that you did not like.
Mason has also had a fruitful relationship with Jim Cramer as his nephew for the last 23 years and will hopefully continue to hold that position for many more as long as he doesn't do anything to get himself kicked out of the family.
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