Cramer's Stop Trading! Are the Yankees Better for the Stock Market? (11/4/09)

Stocks discussed on Jim Cramer's Stop Trading! TV Segment, Wednesday November 4.

Wellpoint (WLP)

Cramer predicts a $40 increase on Wellpoint's (WLP) stock price if its price-to-earnings ratio normalizes; the multiple is now 10.5, and Cramer thinks the ratio will return to its historic level of 14.

According to Standard & Poor’s Director of Markets, Credit and Risk Strategies Richard Peterson, the S&P return in a year following a seven game world series is 8%, and if the Yankees win the present World Series after only six games, the S&P could rise 10%. "So the whole world needs to root for the Yankees," concluded Erin Burnett.

Cramer retorted, "If I'm a bull, are you telling me I've got to root against the Phillies?" he asked. "The Phillies have only been in the World Series three times. It's not like you've got a statistical sample."

However, Cramer conceded that a Yankees victory might create a psychological lift, given that many more traders are in New York than Philadelphia. Erin Burnett suggested Cramer make a compromise prediction that stocks will go up no matter who wins.

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