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CNBC's Jim Cramer: 'Unbelievable' Bull Market Is Genuine, Not Fueled by Politics


By    |   Wednesday, 01 November 2017 01:06 PM

CNBC’s Jim Cramer urged savvy investors to fully embrace the “unbelievable” current bull stock market because the fundamentals behind the rocket ride are very much real.

"This kind of rally seems unbelievable. The world's been starved of growth for ages; we simply haven't seen anything like it for so long that we have a hard time grasping this move and therefore it makes the move feel phony," the "Mad Money" host acknowledged.

Cramer told CNBC that investors should put tax reform and interest rate worries aside and accept the non-inflationary economic expansion.

"This quarter's proven to be one of tremendous bounty, so tremendous that people can't even recognize it," Cramer said. "I'm not telling people to lighten up either in stocks or in mindset. ... I am urging you to forget about tax reform and when that's going to occur, who runs the Fed — love Jay Powell, known him forever — or where rates are going in 2018 and 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. This is what a real bull market looks like — don't fight it. Exploit it while it lasts!"

The S&P and the Dow were higher on Wednesday, as energy stocks gained from a jump in oil prices and strong private jobs data pointed to the strength in the labor market, while Apple’s 1 percent drop limited gains on the Nasdaq.

The recent rally on Wall Street has been supported by strong third-quarter results from technology and consumer companies amid concerns over stretched valuations, Reuters explained.

“Earnings drive the markets, and they continue to be really good,” said JJ Kinahan, chief market strategist at TD Ameritrade in Chicago.

Third-quarter earnings have been largely positive, with 73 percent of the S&P 500 companies that have reported topping profit expectations, according to Thomson Reuters data. That is above the 72 percent profit-beat rate in the past four quarters.

Investors are also tracking the Federal Reserve’s two-day meeting that concludes later on Wednesday. The central bank is expected to keep interest rates unchanged as speculation swirls on who will be its next leader, but will likely point to a firming economy as it edges closer to a possible rate rise next month.

“I don’t believe anybody in the world thinks the Fed is going to do anything with the interest rates now. What they may say about December or next year is what the market is watching for,” said Kinahan.

The White House has said President Donald Trump will announce his Fed pick on Thursday. Trump is expected to choose Fed Governor Jerome Powell, who is seen as more stock-market friendly, sources have told Reuters.

(Newsmax wire services contributed to this report).

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CNBC's Jim Cramer urged savvy investors to fully embrace the "unbelievable" current bull stock market because the fundamentals behind the rocket ride are very much real.
cnbc, jim cramer, bull, market, politics
Wednesday, 01 November 2017 01:06 PM
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