Market Overview

Cramer: The Bull Run Is 'Genuine'

Share:
Cramer: The Bull Run Is 'Genuine'
Related SPY
A Peek Into The Markets: US Stock Futures Fall, Dow Futures Down 100 Points
A Peek Into The Markets: US Stock Futures Up Ahead Of Economic Reports
GE May Be Canary In Credit Market's Coal Mine (Seeking Alpha)
Related
The Latest Tech Wreck Sends Markets Lower; S&P 500, Nasdaq Close In Correction Territory
How To Trade During A Stock Market Correction
S&P 500 Snapshot: Down 1.6% From Last Friday (TalkMarkets)

The stock market's bull run is showing no signs of slowing down as the Dow Jones Industrial Average and S&P 500 index are on a seven-month winning streak. And there is a valid reason for this rally to continue, according to CNBC's Jim Cramer.

Immediately after the 2008 financial crisis, many investors were convinced that the old days of strong growth and massive stock gains are a thing of the past, Cramer said during his daily "Mad Money" show Tuesday. Specifically, economic growth will prove to be "slow and difficult to come by." This was the case for a few years and exiting the financial crisis the only winning stocks were those that either offered share buyback programs, laid off workers to save money and offered at the very least a "steady" growth profile.

In fact, the "FANG" group, an acronym that groups together Facebook Inc (NASDAQ: FB), Amazon.com, Inc. (NASDAQ: AMZN), Netflix, Inc. (NASDAQ: NFLX), Alphabet Inc (NASDAQ: GOOG) (NASDAQ: GOOGL), were among the small handful of companies that actually showed organic growth in the immediate years after the financial collapse.

But this started to change as central banks across the world offered "cheap money," Cramer said. The rapid adoption of cloud technologies, artificial intelligence, data centers, and the Internet of Things, created new high paying jobs and many new "unicorns."

Of course, a "healthy loss of memory about what went wrong" during the financial collapse didn't hurt the sentiment. Across the pond, the entire European continent managed to get its "house in order," which boosted the value of the euro and in turn earnings of American companies that operate in the continent. China, Japan, India and Latin America also benefited from a new era of economic consistency.

"Accept the fact that we have a genuine, non-inflationary boom going on both here and around the world, and the stock market accurately reflects this fabulous situation," Cramer said. "This is what a real bull market looks like — don't fight it. Exploit it while it lasts!"

Related Links:

White House 'Shenanigans' Represent A Buying Opportunity: Cramer

Cramer Breaks Down 3 Cheap Stocks That Crushed Earnings

Posted-In: Central Banks CNBC FANG financial crisis Mad MoneyTop Stories Markets Media Best of Benzinga

 

Related Articles (AMZN + FB)

View Comments and Join the Discussion!

How to Get a Home Improvement Loan

Check Point Software Q4 Guide Gives Investors A Fright