Investors may be missing the forest for the trees, Cramer said Wednesday, when it comes to the banks.
There’s talk of how FDIC fees, mortgage woes and foreclosures are weighing on the sector, but let’s put those in perspective. We knew the FDIC fees were coming. And regardless, the big banks are making enough money trading to pay the bills.
Jobs will cure the mortgage morass, and Wednesday’s strong jobless claims number was a sign we’re moving in the right direction. That positive development further supports another key number we got today, mortgage applications, which were up nicely. And we know that people with jobs don’t skip out on their mortgage.
Then there’s the fear of weakness in the 30-year bond. To that, Cramer said banks need to make money on their loans, and the 30-year trajectory helps them. Also, banks are finding it hard to lend because appraisers keep quoting low numbers that presume lower valuations in the future. But Bernanke’s quantitative easing plans are trying to fight all that.
These negative arguments against the banks have worked so far, but Cramer noticed Wells Fargo , JPMorgan Chase, Bank of America and Citigroup ticking up all of sudden. They are headed back to the levels at which they offered stock during those secondaries.
“The bank stocks are working,” Cramer said. “It’s been a long time, but it matters. Now, can you imagine what would happen if one of the myriad bearish analysts upgrades? You want to be out of the group then?”
Just so we’re clear: “I said that you should fear missing a move in the banks!” Cramer said.
When this story published, Cramer's charitable trust owned Bank of America and JPMorgan Chase.
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