Read this from J. Cramer, Russ, money everywhere......
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You don't get a rally like this because of earnings or the Fed. This rally is a worldwide phenomenon that has more to do with a world flush with cash than it does with price-to-earnings ratios and the growth prospects of individual companies.
The more I think about the Asian markets soaring, the emerging markets screaming, the European markets getting jiggy and the Middle Eastern markets en fuego, the more I think, "Heck, we are just being dragged kicking and screaming higher."
When you put it in that context, with the oil dollars being recycled -- we are going to get more than our fair share because the sheiks always liked our markets -- you know you have a rising tide. Let's grant that many of the countries that produce oil are corrupt, but you can spend only so much disgracefully and preposterously before you have to invest the remainder. And that's going into the markets, too.
I know that there's a big disconnect: How could both GM (GM:NYSE - commentary - research - Cramer's Take) and Ford (F:NYSE - commentary - research - Cramer's Take) be going down the drain -- GM's winning that footrace -- and yet the marts are going higher? But they are but a drop in the overall bucket of liquidity that is out there. I see money dripping from everywhere: Russia, Mexico, Brazil, China, Japan. And that money eventually finds some of its way to the S&P 500 if only because these other countries' investors believe in diversification, too.
What's tipping our markets higher, I believe, is that our marginal real estate dollars are finding their way into stocks, too. The condo game, the third and fourth house gambits, seems so tired. That money's up for grabs.
With that much money sloshing, it is so hard to stay negative. Even if retail seems sickly. Even if autos are terrible.
It's a rising tide that will swallow a lot of bears by the time it is finished. And remember, it will be years before we ever even get back to where we were six years ago for many stocks, and still others have done nothing for years.
J. Cramer |
