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Strategies & Market Trends : News Links and Chart Links
SPXL 224.53+0.4%Dec 5 4:00 PM EST
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To: Jon K. who started this subject12/13/2002 11:16:22 AM
From: Softechie  Read Replies (1) of 29602
 
Throw Away the Macro Map
By James J. Cramer
12/13/2002 11:12
Oh boy, this is a tough one. We have incredibly deflationary numbers this morning, frighteningly so. We have gold spiking, which is more of a function of a weak dollar, but usually signals inflation. We have the dollar diving.

It's a macro hell out there!

I have a theory about why it seems so weird this morning: Nobody knows what to do. Some macro hedgies are making some big bets against the U.S. in any market they can. They are saying that whatever happens out there is just bad for us because we are in bad shape. That's the bet. That's the real underlying bet.

I have to tell you that while these numbers are troublesome in that they are deflationary (take the producer price index drop) but they are not the end of the world. In fact, they are consistent with the slow-growth world that we are in. And in this world, only about one in 10 companies really can grow. And many will have to shrink.

At times like this, and I know this will sound perilous, you have to avoid the macro. You have to search for the companies that can grow in this environment and bet, over time, that the market will reward those companies with higher stock prices.

In other words, it is still business as usual despite all of the macro clutter out there.

Nothing great, nothing terrible; that's just where we are.
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