- CNBC’s Jim Cramer said Monday that last week’s gains may not be temporary, saying great progress has been made in extending the rally.
- He also pointed to last week’s turnaround in the bond market, which led to a dramatic decline in long-term yields.
CNBC’s Jim Cramer said Monday that last week’s rally may not be a temporary shift in the market.
“I simply can’t ignore the best week of the year, where great progress was made in extending the rally to everything from financials to current e-commerce stocks to the usual semiconductor and semiconductor and semiconductor equipment suspects,” said he . “I’m not going to pour cold water on the bond market turnaround that dramatically reduced long-term yields and repelled the five-and-a-bit short on the 30-year bond.”
As with many rallies, Cramer said last week’s market gains were “hard-fought victories” for bulls that were not expected in an oversold market where the “gloom was palpable.”
After last week’s Federal Reserve meeting, where interest rates remained stable, Cramer suggested there may not be any further rate hikes in the next few months. However, he acknowledged that the thesis depends on whether a key component of inflation, such as house prices, accelerates.
Cramer also noted that market attitudes toward companies with significant exposure to China have changed. Apple and Starbucks reported upbeat sales results last week.
But can these steps last? Cramer said fear of missing out could cause asset managers to be “less complacent” about where they put their money, and bond short sellers could become nervous because it doesn’t appear there is oversupply there will be more. He also suggested that many may want to buy Nvidia shares, but told investors to wait for a decline before buying.
“We don’t want to violate our discipline, even though this consolidation is a referendum on last week and I think it looks very good, much better than the bears think,” Cramer said.
Jim Cramer’s Guide to Investing
Click here to download Jim Cramer’s Guide to Investing Free to help you build long-term wealth and invest smarter.
Join the CNBC Investing Club now to follow Jim Cramer’s every move in the market.
Disclaimer The CNBC Investing Club Charitable Trust holds shares of Nvidia, Apple and Starbucks.