As the indexes soar to new heights, CNBC’s Jim Cramer explained why he’s still bullish, telling investors the market is set to keep roaring.
“The cynics just can’t believe what’s happening in this market. They’re so used to finding reasons to be bearish that they’re being overrun by positive events,” he said. “Can these negativists stay baffled? Will they have to commit, convert, get bullish? I don’t know if they can do it, but they’re going to have to if…they want to stop losing the money that they have under management.”
Stocks climbed during Thursday’s session as investors reacted to softer economic data that could allow the Federal Reserve to cut interest rates. While the consumer price index rose, the Labor Department reported this week a surprise increase in weekly jobless claims, and it revised nonfarm payrolls to suggest the labor market created far fewer jobs than previously thought.
All three major indexes closed at record levels and hit new intraday all-time highs, with the Dow Jones Industrial Average finishing up 1.36%, the S&P 500 advancing 0.85% and the Nasdaq Composite adding 0.72%.
Cramer detailed why he thinks some investors are wary of the market, suggesting that many prominent money managers have been fairly bearish since the Great Recession. He also mentioned the U.S.’ “fraught backdrop” as the national debt balloons, geopolitical tensions worsen, the justice system is questioned and President Donald Trump’s social media posts propel stocks.
But individual stocks can succeed despite these factors, Cramer said, suggesting that there are number of companies that seem “cheap right now that are going to be less cheap as they go up.” He also pointed to the booming IPO market and Oracle‘s huge rally — the stock added $244 billion on Wednesday even as it pulled back on Thursday.
“If the bearish money doesn’t pull the trigger soon and become buyers, their investors will go somewhere else,” he said. “And then the bull market won’t be the managers’ problem anymore.”
