Jim Cramer says the U.S. has advantages that short-sighted investors don’t understand.
The stock market should’ve been down Tuesday, Jim Cramer told his Mad Money viewers, but instead, we had a great run. How’d that happen? It wasn’t bonds, earnings, or housing starts that drove stock prices higher, nor was it any good news on the inflation front.
The real reason for today’s rally was sentiment — positive sentiment to be exact.
When interest rates are on the rise, that’s actually a great time to invest. That’s because if the Federal Reserve does it right, the economy has a so-called soft landing, which creates the perfect environment for companies to profit and stocks to soar.
If you look across the globe right now, you’ll see that America has a number of advantages that short-sighted investors cannot see. Energy prices are rising around the world, but here in the U.S., we have abundant supplies of oil and natural gas to last us another 100 years. It will take some time to ramp up production to meet demand, but that’s something most other countries simply cannot do.
Then there’s Covid. America has the best vaccines in the world and our time with Covid is quickly fading. That’s not the case in China, where Covid lockdowns and authoritarian policies are crippling the Chinese economy.
Add it all up, and America has the edge on the rest of the world. That’s why our stock market will once again lead the world higher, Cramer said.
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