Jim Cramer, best known for his contrarian market evaluations, expressed exuberant emotions last week and boldly declared that the bear market is officially over.
The CNBC TV personality passionately exclaimed on Friday that recent market conditions have been situated in bear territory, and will now reverse into a bull market. “There are 600 companies that came public in the last 18 months. There’s like seven of them that trade north of nine bucks. This is the bear market, just like 2001, except for we have rates much lower,” he said.
“I’m looking at all the companies under $10, many of them are actually making money. We are in some weird market, that is a bear market, and that no one called it as a bear. And I think the bear market is over,” Cramer added. The TV commentator was referring to SPACs priced below $10, which generally are situated around that price level. According to data from Tuttle Capital Management, there were a total of 613 SPACs that made their IPO debut in 2021, with another 52 joining the list since the beginning of 2022; however, companies that have since merged with their target reported average returns of -33.7%.
Alas, according to Cramer, it means markets are now headed for an upwards trajectory against a backdrop of the highest inflation in over 40 years, rising interest rates amid an inverted yield curve, oil prices above $100 per barrel, and worsening global food shortages.
Does that sound like a recipe for a bull market?
We will just leave our audience with this…
Information for this briefing was found via CNBC and twitter. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.