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"I am amazed every day at this rally," says Jim Cramer. "It's very unusual to have the...

"I am amazed every day at this rally," says Jim Cramer. "It's very unusual to have the cyclicals, the techs, the financials and the drugs all move at once. It's reminiscent of other times where we saw a radical revaluation in the market." While others may see it as signs of another bubble developing, Cramer sees little evidence. "The S&P is only at 15 times earnings," he notes, and the bond market continues to be a place where you can't get any return. This rally Cramer says, is for real.
Comments (58)
  • IPOChaser
    , contributor
    Comments (63) | Send Message
     
    There we go, this rally is officially no longer "for real"
    11 Apr 2013, 08:19 PM Reply Like
  • IncomeYield
    , contributor
    Comments (2613) | Send Message
     
    Yikes, CNBC reports ...

     

    More than 55 million shares were sold versus 1,780 shares bought for a sell-buy ratio of an eye-popping 31,109 to 1 at the 10 biggest tech companies, including Microsoft, Oracle and Qualcomm, according to Alan Newman, editor of the Crosscurrents newsletter and market analyst for 49 years.
    11 Apr 2013, 08:30 PM Reply Like
  • HPBunker
    , contributor
    Comments (219) | Send Message
     
    The joke's on Cramer. The smart money has already moved on to tulip bulbs, which are projected to return 100% monthly over the next 5 years. Their P/E ratio is undefined, due to the impossibility of dividing by 0, but they nonetheless offer appealing risk-adjusted returns due to their high intrinsic value relative to stocks (when placed in dirt and watered, tulip bulbs produce pretty flowers, while paper stock certificates merely rot).
    11 Apr 2013, 08:38 PM Reply Like
  • Tack
    , contributor
    Comments (14112) | Send Message
     
    HP:

     

    You're wrong. Bitcoins!
    11 Apr 2013, 08:45 PM Reply Like
  • Macro Investor
    , contributor
    Comments (8782) | Send Message
     
    How can 55 million shares be sold without someone buying them?
    11 Apr 2013, 10:05 PM Reply Like
  • Rseye
    , contributor
    Comments (1214) | Send Message
     
    When profit taking happens, money has to go somewhere = Gold and Silver...
    11 Apr 2013, 08:38 PM Reply Like
  • redarrow5150
    , contributor
    Comments (1158) | Send Message
     
    Have you seen the charts of gold? Heck with countries printing more money gold should be going up not down.
    11 Apr 2013, 10:01 PM Reply Like
  • Macro Investor
    , contributor
    Comments (8782) | Send Message
     
    I guarantee you that gold will go up in the next 50 years. Value investors should be patient.
    11 Apr 2013, 10:05 PM Reply Like
  • redarrow5150
    , contributor
    Comments (1158) | Send Message
     
    Yes and I guarantee you the stock market will go up in the next 50 years. Your point?
    12 Apr 2013, 08:28 AM Reply Like
  • Macro Investor
    , contributor
    Comments (8782) | Send Message
     
    Yes, but it will go up because of fake money printing. Is that what you want?
    12 Apr 2013, 09:51 AM Reply Like
  • DaLatin
    , contributor
    Comments (1522) | Send Message
     
    @MI, agree with massive printing,but, all G7 Centrals are doing it and we live in a fiat currency system world !

     

    So, hard assest or equities as they'll adjust an inflate in price to track devaluation of paper.

     

    CASH IS TRASH if you live in a G7 country !

     

    Pssst, even the little countries with better currency are feeling pressure as even the Swiss went of gold !

     

    STOCKs..
    12 Apr 2013, 11:19 AM Reply Like
  • Macro Investor
    , contributor
    Comments (8782) | Send Message
     
    What about morality? Isn't it better to be a pauper by buying precious metals than to be rich by buying stocks? What would right wing talk show hosts do?
    12 Apr 2013, 11:37 AM Reply Like
  • DaLatin
    , contributor
    Comments (1522) | Send Message
     
    @MI...Look out for number 1 !!! You and your family ! When in Rome/USA do as it does ! I agree with your overall point & moved all my assets into a Foreign Foundation in 2002 & moved out of the USA in April 2012 & turned in Passport.. I do get the moral destruction amigo ! Pura vida
    12 Apr 2013, 11:44 AM Reply Like
  • Macro Investor
    , contributor
    Comments (8782) | Send Message
     
    When everyone looks out for number 1 and votes pro-growth politicians in power we get a booming economy. That's not what we want. We want the austerity pundits in power so that we can have crushing recessions and feel good about it.
    12 Apr 2013, 11:47 AM Reply Like
  • DaLatin
    , contributor
    Comments (1522) | Send Message
     
    Stop the right wing tv clips. Those days are gone forever ! 54% of the country doesn't see it your way & there numbers are growing.I'm a conservative and agree with PAYGO,but, that's never going to happen in your life time..

     

    Having moved to the US from Latin America & then left as any smart Latin would do I will tell you.Romey's 29% of their vote was a blessing as many new he wasn't a conservative, Heaven helps the brain dead Republicans if the do run a conservative. He/she will not reach 20% of the Latin vote & Hilary will smash who ever runs ! Get ready for 8 more an then some. Progressives have changed the USA ..

     

    Want the real skinny.. Read Pat Buchannen's new book and see what will be.
    12 Apr 2013, 11:57 AM Reply Like
  • redarrow5150
    , contributor
    Comments (1158) | Send Message
     
    So Apple's 137 billion in cash is fake money and it's stock price is a ponzi scheme?
    12 Apr 2013, 03:17 PM Reply Like
  • redarrow5150
    , contributor
    Comments (1158) | Send Message
     
    I didn't know we voted Ben Bernanke into office? Quite frankly the politicians have been a bunch of pussies as they have the FED doing much of the work which Congress should be doing.
    12 Apr 2013, 03:20 PM Reply Like
  • Macro Investor
    , contributor
    Comments (8782) | Send Message
     
    Bernanke is preventing the economy from having a nice long recession. In the process, he is corrupting the moral fiber of Americans. If we can have a lot of pain now, who is Bernanke to say that we shouldn't? Pain cleanses the soul, and 30-40% unemployment brings us closer to the ages when the rich ruled the land and the poor were serfs - a conservative dream.

     

    Down with Bernanke.
    12 Apr 2013, 05:21 PM Reply Like
  • DaLatin
    , contributor
    Comments (1522) | Send Message
     
    Well, your entitled to your opinion,but, he's a hero to most of the financial world. And, he isn't alone in his plans.Only Japan resisted his ideas and now they decided to copy his exact move.1.5 trillion of it !

     

    The days of the 85% WASP rule in the USA is over and right wing folks need to find a country with a Parliamentary system to move to! This way they can have 2 cents to bargain with.Not welcome in US despite what Fox says !
    12 Apr 2013, 05:27 PM Reply Like
  • Macro Investor
    , contributor
    Comments (8782) | Send Message
     
    This will ultimately cause the downfall of the USA where the rich can no longer lord over the poor. It is unthinkable that Obama is providing healthcare to the poor. Are the poor not supposed to die out of sight once their utility as workers is over?
    12 Apr 2013, 05:29 PM Reply Like
  • DaLatin
    , contributor
    Comments (1522) | Send Message
     
    All private medical insurance companies will fold. Obama wants a single payer system like we have down here in Costa Rica . Sad, as folks who can't pay big dollars will die early !

     

    He said it as a Senator and he will deliver ! Just look at the horror already caused.2014 will usher in the NWO..

     

    Be prepared... You all can come down here for wonderful care at cheap prices,but, I'd recommend Thailand ! Medical care there is grate cheap and like a 5 star vacation !
    12 Apr 2013, 05:34 PM Reply Like
  • redarrow5150
    , contributor
    Comments (1158) | Send Message
     
    Bernanke huh? Think again
    http://bit.ly/12SPkai
    12 Apr 2013, 05:39 PM Reply Like
  • redarrow5150
    , contributor
    Comments (1158) | Send Message
     
    "If you help the poor, you are lending to the Lord---and he will repay you!

     

    Proverbs 19-17
    12 Apr 2013, 05:44 PM Reply Like
  • Macro Investor
    , contributor
    Comments (8782) | Send Message
     
    That may be true, but the poor doesn't vote Republican, so why should Republicans do anything for the poor?
    12 Apr 2013, 05:46 PM Reply Like
  • DaLatin
    , contributor
    Comments (1522) | Send Message
     
    @redarrow5150...Great clip ! hate seeing that suck up ! Funny,folks hate WS banksters and see the Republicans as the cause of WS greed,but, it's suck up Sen.Chuck S who gave them all the perks an IRS exemptions !

     

    I took every tax break for all my WS years I had accounts in Puerto Rico where it all legally grew tax free !
    12 Apr 2013, 05:47 PM Reply Like
  • redarrow5150
    , contributor
    Comments (1158) | Send Message
     
    "Unfailiing love and faithfulness protect the King; his throne is made secure through love.

     

    Proverbs 20-28
    12 Apr 2013, 05:50 PM Reply Like
  • mike mohr
    , contributor
    Comments (452) | Send Message
     
    Right the rally is for real. Let the banks buy these cheap stocks. We all know Goldman and your hedge fund friends have to unload their shares.
    11 Apr 2013, 08:40 PM Reply Like
  • Hendershott
    , contributor
    Comments (1621) | Send Message
     
    There's absolutely nothing going on in tech that makes one want to invest in it. The cloud guys are having price wars, we have enough clouds now. Facebook et al have figured out how to use cheap servers with off the shelf parts, nobody really needs big custom systems from Oracle or HP. Even the HFT crowd has stopped buying since they aren't making money lately. Apple turned tech into consumer products with short, expensive and brutal product cycles. The semi guys are bundling everything into one chip so everyone's addressable market is falling. having just migrated systems to Windows 7 corporate managements see no reason at all to shift to Windows 8. Everything that is new is social or software and it's all just to deliver advertising or expensive sports video.
    11 Apr 2013, 08:47 PM Reply Like
  • redarrow5150
    , contributor
    Comments (1158) | Send Message
     
    Who cares the market is good right now why fight the trend?
    11 Apr 2013, 09:04 PM Reply Like
  • SonnyBlack11
    , contributor
    Comments (2) | Send Message
     
    Its all about the small Biotechs....Check My Blog Cramer...And by the way ...You have to be the single most annoying person on the Planet..and I am begging you to lose that "Phony Laugh" On CNBC...
    11 Apr 2013, 09:10 PM Reply Like
  • HPBunker
    , contributor
    Comments (219) | Send Message
     
    Good question! And why fight the trend in housing prices in 2006? I mean, they only go up, right?
    11 Apr 2013, 09:11 PM Reply Like
  • redarrow5150
    , contributor
    Comments (1158) | Send Message
     
    Much like stock prices it depends on when you bought it AND when you sold it.
    11 Apr 2013, 09:54 PM Reply Like
  • pollyserial
    , contributor
    Comments (1088) | Send Message
     
    Not taking profits is not taking profits, no matter where you bought it.
    11 Apr 2013, 11:01 PM Reply Like
  • Snoopy1
    , contributor
    Comments (1116) | Send Message
     
    Just a reminder of what Jim Cramer was saying in late Feb 2000 right before the tech bubble collapsed.

     

    http://bit.ly/gghLmE
    11 Apr 2013, 09:27 PM Reply Like
  • mike mohr
    , contributor
    Comments (452) | Send Message
     
    Please remind him of Bear Stearns before its collapse.
    11 Apr 2013, 09:36 PM Reply Like
  • zippychippy
    , contributor
    Comments (23) | Send Message
     
    What did Jim say about Bear Stearns? Here, let me remind you...

     

    http://bit.ly/L9pC2O

     

    You can't make this stuff up....
    11 Apr 2013, 09:35 PM Reply Like
  • BIG_BEN
    , contributor
    Comments (157) | Send Message
     
    Hah. Classic Cramer! Like IPOChaser said, time to sell! I find Cramer quite entertaining to watch but most of us know you make more money doing the opposite of what he recommends.
    11 Apr 2013, 09:39 PM Reply Like
  • redarrow5150
    , contributor
    Comments (1158) | Send Message
     
    I get it Cramer missed it but so did the Bernanke the rest of the financial sector. Still can't believe how anyone purchases bank stocks these days.
    11 Apr 2013, 09:56 PM Reply Like
  • tough times
    , contributor
    Comments (57) | Send Message
     
    Yep, you said it. We know about your calls CIT and what not?
    11 Apr 2013, 09:55 PM Reply Like
  • David White
    , contributor
    Comments (4401) | Send Message
     
    Cramer is obviously not paying any attention to Jim O'Neill. He pointed out recently that the CAPE (cyclically adjusted PE) was about 24 compared to a normal average of 18.7. The market has gone up several percent since Jim O'Neill gave out that information. This means that the CAPE is now probably 25+. Of course, Cramer doesn't believe in these new fangled metrics that GS uses. That's why he's a perma-bull.
    11 Apr 2013, 10:19 PM Reply Like
  • Tack
    , contributor
    Comments (14112) | Send Message
     
    Good, old CAPE. http://tinyurl.com/cqv...

     

    It's been above its long-term norm ever since 1990, save for 2008. Was everybody supposed to have been in cash for 22 of the last 23 years?
    11 Apr 2013, 10:29 PM Reply Like
  • srspa77
    , contributor
    Comments (326) | Send Message
     
    The job market and main st. are getting hurt. Don't get me started on the healthcare in this country.
    11 Apr 2013, 10:22 PM Reply Like
  • Robert Duval
    , contributor
    Comments (6705) | Send Message
     
    Uh, negative. The market is a 10 PE -- based on say 2016 eps.

     

    Its not what is real, it perception that counts.
    11 Apr 2013, 10:33 PM Reply Like
  • Julius Ferraro
    , contributor
    Comments (495) | Send Message
     
    Your right! And their even cheap if you base them on 2029 eps. Come on; only 3 times 2029 forward earnings
    11 Apr 2013, 10:45 PM Reply Like
  • Robert Duval
    , contributor
    Comments (6705) | Send Message
     
    Exactly. Pay Now for growth later.
    11 Apr 2013, 10:57 PM Reply Like
  • Archman Investor
    , contributor
    Comments (2815) | Send Message
     
    The stock market has nothing to do with 85% of Americans anymore. Most Americans have little or no net worth. They are not in the stock market. If they do have money in stocks it is minimal at best.

     

    You go with the flow of the market until the FED (if ever) stops their QE to infinity.
    11 Apr 2013, 11:00 PM Reply Like
  • sheldond
    , contributor
    Comments (1292) | Send Message
     
    Is it money from Japan and the rest of the world seeking refuge. This is the only scenario that I see as possible.
    11 Apr 2013, 11:59 PM Reply Like
  • HPBunker
    , contributor
    Comments (219) | Send Message
     
    My channel checks show that Japanese investors are borrowing yen, converting to euro, and loading up on tulip bulbs, not stocks. The US equity market is currently supported entirely by Goldman's Abby Cohen and CNBC's Jim Cramer, each of whom run a whole stable of HFT algorithms that trade SPY back and forth to the tune of ~100 million shares each trading day. If one of them gets antsy and decides to sell, look out below!
    12 Apr 2013, 12:48 AM Reply Like
  • DaLatin
    , contributor
    Comments (1522) | Send Message
     
    Well for many MONTHS before Cramer came to this revelation seems I've been pounding the Stock Talk area with this very same story ! I've played this game 81 years and seen only a few of these type bulls !

     

    You all can mentally masturbate and spew out all you want,but,the forces that be..

     

    As the G7 and there Central Banks have made holding any of there currencies idiotic ! There all dropping in value and you foolish not to see only equities can give you a way to sleep at night..

     

    I buy LAND. Land and more land with water for the future and loads of real PMs for 55 years ,but,the "stock market"(s) and the economies are two separate animals now ! And, the multinationals are today's BANKs..Big yields an all !

     

    Not a fan of Cramer and we don't get his show down here,but, he is quite late to this call,but,he also was 110% dead on this past Sunday on Meet the Press saying this push up was mostly foreign buyers from Asia an EU.Again,what he didn't say was since Sept. 2012 it's been 85% foreign buyers searching for safety.

     

    Thus, the good symbols in the markets are the banks now and owning any currency is risky ! I've seen this for 5 years and have moved all my cash accounts in 3 countries to Yuan based accounts at the BOC.

     

    Worked out dam well & Yuan keeps hitting multi year highs against the USD and this will continue. This is the reason China has done a 180 turn from selling most of the US paper in 2011~12 to record buying over the past 6 months. They must slow the YUAN's rise and prop the USD.They are doing the Fed's lifting !
    12 Apr 2013, 01:02 AM Reply Like
  • Interesting Times
    , contributor
    Comments (159) | Send Message
     
    I am sure Cramer is right! ROFL..

     

    Time to buy your ammo as the govt wants all of us on a list!
    12 Apr 2013, 02:50 AM Reply Like
  • John Schuh
    , contributor
    Comments (4) | Send Message
     
    I remember when the last crash happened the forward P/E of the market indexes were about 15 times earnings or less but the current P/E was close to 20 times earnings. We are close to those same numbers.

     

    http://on.wsj.com/sXXWWp

     

    Dow Industrial: Current 16.28 Forward 13.05
    Dow Transportation: Current 20.91 Forward 15.55
    Dow Utility: Current 25.19 Forward 16.25

     

    Russell 2000: Current 34.88 Forward 16.10
    Nasdaq 100: Current 17.05 Forward 15.00
    S&P 500: Current 18.35 Forward 14.10
    12 Apr 2013, 04:06 AM Reply Like
  • DaLatin
    , contributor
    Comments (1522) | Send Message
     
    The last crash was caused by 90% of most firms public and private on the planet lacking cash to run there businesses ! We all SHOULD have learned from the Supreme Court victory by Bloomberg against the Federal Reserve ! Which showed Ben doled out trillions to everyone.Govs, Companies small and large, even Colombian hookers. The amount was larger than Stimulus QE's TARP an TWISTs combined.

     

    That along with the losses from the packaged MBSs the banksters sold caused the crash !

     

    Now, there are trillions sitting all around the planet and these firms are buying back mega amounts of there own shares ! There all choke full of dollars.
    This IS NOT THE same !

     

    And, smart folks running these symbols see what is happening to the currencies where the operate. There is no place but equities ! Stock is king and cash is trash !
    12 Apr 2013, 04:16 AM Reply Like
  • John Schuh
    , contributor
    Comments (4) | Send Message
     
    You don't think there are bubbles that are happening right here, right now? That really blows my mind. So we don't have a bond bubble? I am sorry you don't see a bubble in Treasury bonds, Municipal bonds, along with what is almost 17 Trillion dollar government debt. The government cannot continue to spend and prop up the markets like it has for forever. Currently stocks are priced for perfection, you don't think the market will slide when companies miss a quarter or two? When you think that this time is an exception or when this time the market going up everyday cannot come back down is the time to get out. You can party like it's 1999 but you're 2000 will come. (a little NASDAQ reference)

     

    If you are fully invested and you don't see the disaster coming, I suppose you'll one that will be hardest hit. Good luck in the future.
    12 Apr 2013, 10:34 AM Reply Like
  • redarrow5150
    , contributor
    Comments (1158) | Send Message
     
    Nope there isn't a bond bubble. What you're seeing in the bond market are people getting tired of CD and money market rates giving them obsolutely nothing. They are moving those dollars to tax free municipal bonds.
    12 Apr 2013, 03:22 PM Reply Like
  • DaLatin
    , contributor
    Comments (1522) | Send Message
     
    Bubbles yes,but, equities are not close to a bubble and there the only defense from the ones your pointing out. Its the G7 Central's printing creating bubbles in currencies.Not stock symbols who are making real products and services an selling them !

     

    And, BONDs.. They would be in a bubble,but, China must protect their billion + ppl and they will buy US Bonds in amounts above what the FED did just to support the USD..Or their YUAN will keep soaring !

     

    Don't worry about me amigo ! I use tight STOPs and have a great talented crew watching the PRE & AH and I can drop a few hundred million and not notice it !

     

    You better watch the realities of today ! You need to see what the 5 BRICS just did with their new bank an swap agreements ! China just signed with Austraila and that makes 24 in two years ! The WORLD is moving away from the USD despite the strength against the so called "basket" you here quoted everyday ! tic tic tic..

     

    BRICS are getting ready an 5 years they'll demand the IMF go to all SDR8s.. Viola.. "reserve" gone. THERE is the ONLY bubble you need to worry about !
    12 Apr 2013, 03:30 PM Reply Like
  • John Schuh
    , contributor
    Comments (4) | Send Message
     
    There are some cheap stocks out there but an investor should be picky about what they pick up. They need to do research and know what they buy well. Government intervention in currencies will eventually equalize and be made right by the market.

     

    The vast majority are trading at historically high levels in relation to future earnings. So the risks are high on most companies with current PE's over 20x. There's always a few cheap stocks but finding a company that has real value is always a challenge....even more so today.

     

    I refuse to pump additional hype out on the market. They should be aware of the risks, even in US equities...especially with trying to predict future PE ratio's. Growth is not a sure thing and people can cut back on what they spend. Future PE can change from being trading 15x earnings to 30x earnings or more within a blink of an eye. Companies future PE's can change quickly when people stop buying or delay buying because they lose their job or forced into a lesser paid one, or cut out unneeded expenses.

     

    Equities are easily in a bubble when companies or people have too much borrowed, companies have been priced up to have a forward PE of 15x earnings while having current PE's around 20x, and if the consumer pulls back. *sigh* Bad things happen. When a company is at 20x earnings and suddenly is valued at 30x future earnings and the stock corrects to them having forward earnings of 15x or 10x in value. That could be a massive drop for the company. Companies are priced for perfection and if they disappoint, we really could be in trouble. But no worries if they can continue to beat or maintain those levels. I would say the chances of that happening are very slim.

     

    Many of the US companies also have big exposure to Europe among other foreign countries. If those countries struggle, so will those stocks.

     

    If we have high inflation, companies are also in big trouble. Just Google hyperinflation. Everyone is hurt. No matter what the fed does from here, we are bound to get hurt. Too much is borrowed and they can't keep this up for much longer.

     

    I'm not saying, don't have stocks. What I am saying is be very picky and know your company along with their balance sheets.
    13 Apr 2013, 05:44 AM Reply Like
  • redarrow5150
    , contributor
    Comments (1158) | Send Message
     
    And what you wrote how is that any different say 20 years ago?
    13 Apr 2013, 06:58 PM Reply Like
  • Rope a Dope
    , contributor
    Comments (698) | Send Message
     
    Cramer says 'up'?

     

    Look out below.
    13 Apr 2013, 07:08 PM Reply Like
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