If fear breeds sales, then of course less fear should lead to less sales. This was Jim Cramer’s take on the markets on Monday, as he told his Mad Money viewers that they should ignore the pre-market bearish action and keep an eye out for the only three things that matter to the market. market … profits, Covid and interest rates.
The two sectors that matter most to the stock market right now are transportation and banking, Cramer explained. If Covid is under control, that means the economy is growing, which is great news for transportation, which moves the goods our economy needs. And if the Federal Reserve is gearing up to raise interest rates, then that’s great news for banks, who will be making more money on their loans.
Transportation and banking are the punch that can keep bears at bay. If both groups roar, it’s almost impossible to keep the market down. That’s because if the economy shifts then retail is strong too, and if Covid isn’t as bad as we feared then travel and leisure stocks may pick up as well.
Now that we’ve got the week off to a good start, Cramer hasn’t seen much to keep markets low – that is, until Friday when the latest Consumer Price Index could be in. able to throw a wrench in the works and bring inflation fears back into focus for investors.
Until then, however, we could be having a great week.
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