This is what a real bull market looks like, Jim Cramer proclaimed to his Mad Money viewers Tuesday. Don't fight it, he said, exploit it while it lasts.
Yes, it's true. Ever since the Great Recession, investors have gotten so cynical that they've forgotten what real growth looks like. That's why it's been so hard to grasp the market's recent gains and why the whole move seems phony in some way.
But the truth is, the era of beating earnings only by cutting costs, buying back shares and selling underperforming units is over. This is what a real bull market looks like.
All around the world, the global economy is picking up steam. Japan is seeing growth. China is seeing growth. Europe is on the mend. India and Latin America are recovering. This is synchronized global growth at its finest.
Technology is booming, thanks to the data center, the cloud, machine learning and the Internet of things. Aerospace and defense are booming as countries scramble to defend themselves. Construction and housing is strong thanks to two hurricanes and favorable demographics. All around us, there's a virtuous circle of economic activity and growth to be had.
Even the beaten-down food stocks were able to rally, thanks in part to a 6.2% move in Mondelez (MDLZ) . Cramer said he even might consider Under Armour (UAA) a bargain soon, once the excess inventory has been cleared.
Don't fight the bull, Cramer concluded, embrace it while it lasts.
Source: Bloomberg Pro Terminal
Trader Nikolay Georgiev
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