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Cramer: Is this a BULL Market?

Tampabay
in Off-Topic
With the market reaching 15-year highs, and things going around, Cramer believes we are in a bull market. "In a bull market things go right. That's just what happens. Worries get squashed, objections get rebutted and fears are quelled," said Cramer.

One of the signs of bull market is the gain in JP Morgan (NYSE:JPM) even after investigation of gold rigging, news of the bank charging high deposit fees and announcing that it will not break into smaller pieces for unlocking value.

Another sign is the gain in Home Depot (NYSE:HD) even after the negative article in the WSJ arguing that the company is overvalued. First Solar (NASDAQ:FSLR) too behaved like a bull market stock and rallied 10% after announcing a joint venture with another company and then set that up for yield. "In a bear market even things that make sense don't work. In a bull market, they work writ large." said Cramer.

Cracker Barrel (CRBL), which reported good numbers as they got the advantage of lower gasoline prices, went higher. Even when only one of the seven analysts have Shake Shack (NYSE:SHAK) as a buy rating, the market ignored the six analysts and the stock rallied. This is a sign of a classic bull market.

Another sign is Yellen's testimony, which gave nothing concrete, but the investors still found a reason to buy stocks. "When things go right in a bull market, stocks go up. And when they don't go right, investors find reasons to buy stocks anyway. That's how the market goes higher," said Cramer.

Signs of a Bull.....


Comments

  • CharlesCharles
    Yes, indeed.

    I agree with Mr. Bullya on this one.

    Resilient.

    c
  • hank
    edited February 2015
    Quite a "shake-out' in 07-09 though.

    Maybe a planned conspiracy to clear out the weaker hands?

    :)
  • JohnChisum
    Is this a transcript of his mad money or whatever they call it now? The show where he pumps stocks that his trust owns.

    While he may be right, be sure to stay back aways to avoid the spittle when he gets excited.
  • CharlesCharles
    edited February 2015
    The current bull started March of 2009.

    Here are the SP500 Total Return numbers for the past 5 bull markets...

    image

    I believe the "test" for current bull was September 2011.

    c
  • johnNjohnN
    If i am retiring next yr i am selling. This is what i told my mom who will retire next yr
  • scott
    edited February 2015
    It's a bull market, but I think in a lot of ways it's a TINA market, which is concerning to me.

    Things do feel a bit complacent lately and valuations seem rich. That said, things keep marching higher. I guess for me it really comes down to what do I want to own for the long-term? If I own something like a railroad for the long-term, I can pull back and not be so concerned with day-to-day valuation or news, or what Yellen says.

    I think what's interesting is the devastation that has occurred with some of the IPOs that came out in the last year, including things like RetailMeNot, Coupons.com, Noodles and Co, Lending Club (which I'm glad I took profits on, geez), Box and others (well, soon to be Shake Shack). Even Alibaba is now down a bit from where it opened, although it's down now heavily from the high.

    For a market that does seem in a lot of ways complacent, there is a long string of "hot" IPOs over the last year that have gotten obliterated, so I guess that's something.

    Additionally, the retail investor is not back in the same fashion they were in before 2008 and I think that will still take time. There's a lot of factors, including confidence.




  • catch22catch22
    edited February 2015
    @johnN

    You stated:
    "If i am retiring next yr i am selling. This is what i told my mom who will retire next yr"

    I presume you imply selling all equity positions.

    And that money will travel to where ???

    Balanced Money



  • Tampabay
    I have had thoughts/ideas "IF I ever get into a position where I have ALL the money I will ever need to live the lifestyle I want to live"
    Why not just take the 2% or whatever in CDs to cover inflation and....FORGET ABOUTIT?
    Luckily I'm not there yet, my "investing mind" wouldn't let me NOW......
    but in 5yrs,10yrs, who knows
  • beebee
    edited February 2015
    If a retiree is lucky enough to cover monthly expenses with SS, pension, income annuities and maybe even periodic dividends there is less of a risk selling invested assets at the wrong time (down market).

    Even these "lucky chucks" will probably still need to deal with RMDs at age 70.5. It might be a good exercise to create a personal hierarchy of where to access income sources in retirement:

    For me some of these income sources might be:

    -Part time work (might help delay taking SS)
    -Dividend Income in taxable accounts
    -Spending down cash assets in taxable account (munis or CDs)
    -Social Security (determine age to initiated)
    -Pension
    -Annuity
    -H.S.A (Health Saving Acct...for qualified Medical expenses)
    -RMD on deferred IRAs
    -Roth IRA distributions (this might also be tapped earlier to help cover unexpected expenses)
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