The 'Mad Money' host dispelled the idea that the Federal Reserve 'engineered' stocks to rally and the S&P 500's climb above 3,000.
Cramer said that Wall Street got a "boost" after Fed Chair Jerome Powell hinted that the central bank may soon cut its target benchmark interest rate of 2.25% to 2.5%. Powell, appearing in front of the House Financial Services Committee Wednesday,because of signs that business investments are slowing and other economic uncertainties.
Cramer said there's no need to fear a "Fed-induced bubble" in the market will cause stocks to soon give up the ghost. A bubble is where stock prices escalate rapidly, followed by a contraction. "The prospect of a rate cut is what ignited the market" today, he said. "I've been investing since the S&P 500 was at 87. ... I've seen this process play out where the stock market rallies on rate cuts the whole darned way."The gains that investors made in Wednesday's session is more money in the bank, Cramer said.Cramer said foreign investors have targeted the U.S. market because the economy is in better than shape than many other developed countries.
"My response is: who cares? We have a strong currency," Cramer said. "The dollar is a magnet for money from overseas. So what? Again: A win is a win."Cramer shot down suspicions that the market is rigged in favor of stocks over bonds. The fact is, he said, bonds are not yielding returns because inflation and demand for money is so low. Last month, the central bank"That means stocks, especially stocks with decent dividends, are the only game in town," the host said.
"If you thought business was going to slow down and you were worried about the market," he said, "then after what Powell said today you should be more willing to own and buy stocks because you're getting a jump on better times."Cramer said it's not all about the companies, rather it's about the businesses behind the underlying stocks.
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