Jim Cramer says investors need to accept the forces of inflation, and view everything through the lens of the Fed and via the situation in Ukraine.
When push comes to shove, most people expect things to go right, Jim Cramer told his Mad Money viewers Tuesday. That’s something the bears never seem to learn, despite the Dow Jones Industrial Average soaring from 1,000 to 35,000 over the past 30 years.
Make no mistake, there are plenty of things to worry about in today’s market. Between the war in Ukraine, rampant inflation, a Federal Reserve that’s woefully behind the curve and supply chain issues as far as the eye can see, stocks should be lower. That is, unless you have hope for a brighter tomorrow.
Last week, investors applauded the Fed’s rate hike, and this week, they cheered when Fed chair Jay Powell told us he’d be forceful yet flexible when it comes to knocking out inflation. Why? Because they mean the Fed is finally on the job and inflation will soon be under control.
Sure, in an ideal world, stocks should be valued on their own merits, Cramer admitted. But for the time being, we must bow to the forces of inflation, and view everything through the lens of the Fed and via the situation in Ukraine.
Investors have finally comes to terms with the fact that our economy is strong enough to endure both events, Cramer concluded, and that’s how we were able to rally into the close.
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