After U.S. stocks finished little changed in another tight trading day that featured sharp drops in commodities and government bonds, Jim Cramer on Wednesday contemplated what could take the market to new heights.
“We need people to come in off the sidelines with their cash, and we need people to sell their bond funds before their gains turn into losses,” the “Mad Money” host said, adding the people need to stop being content with the measly 0.4 percent interest earned on certificates of deposit when many stocks pay a dividend yield of 4 percent or more.
Some may have concerns about getting back into the market, but Cramer pointed out that the last time the market hit these levels, it was being led by just a few sectors.
Today, however, there is leadership in housing and housing-related stocks, as well as domestic banks and retailers. He sees it as a sign the U.S. economy is gaining strength.
“The consumer's leading us out of the morass, starting to buy homes, with the Fed's low interest rates, and starting to buy a huge number of cars and other goods even with gasoline very high,” he noted.
While it’s important to be skeptical about the averages and take counsel of the fears of 2007 and 2008, Cramer reminded viewers to also counsel the possibilities and opportunities, too.
— CNBC.com and Reuters contributed to this report
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