CNBC personality Jim Cramer believes that a downturn is no longer a threat to the US economy as some of the top companies trading on the stock market put in strong performances.
In a new episode of CNBC’s Mad Money, Cramer says that the stock market still looks strong even after witnessing a pullback on Thursday, driven by the Fed’s announcement of a fresh rate hike.
The television host also says that he doesn’t see the US economy shrinking while publicly listed companies continue to perform “incredibly well.”
“I don’t want you to lose faith in this incredible bull market. Even when the market’s on fire, stocks can still go down. That’s just what happens. We can always get bad days, especially when they start as really good days and people are too exuberant…
However, I don’t think this sell-off is the end of the world. To me, it feels more like a garden variety pullback rather than the kind of horrific declines we’ve grown accustomed to over the last couple of decades when the market looks really good.
When you remember that recession is no longer on the horizon, that’s what we have to believe, and many companies are doing incredibly well, buying stocks into weakness is actually rational. It makes perfect sense.”
Cramer says that the stock market’s ascent this year reminds him of a period about 40 years ago when equities rallied hard. According to the analyst, the strong fundamentals of public companies will continue to push equities to greater heights despite the Fed’s tight monetary policies.
“For the first time since the 1980s and the early to mid-1990s, we have a lot of legitimate stocks belonging to many companies with amazing balance sheets and terrific prospects that are flat-out doing very well…
We haven’t had such a large percentage of high-quality stocks doing this well since the late 1980s and early 1990s. We were never punished for being ‘giddy’ back then. People were just making a lot of money. That was an amazing recession-free period. We got something like that going on now with strong numbers coming out every day, even as the Fed tries to reign things in.”
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The post Recession No Longer in Sight As Stock Market Witnesses ‘Incredible’ Bull Market, Says CNBC Analyst Jim Cramer appeared first on The Daily Hodl.
