Cramer's Bernanke Celebration Portfolio

Posted by: sarah z

Updated:
09.19.07
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From Mad Money 9-18-07:

Jim started by talking about how the Fed used to know nothing, but now they know something. Tuesday we received and unexpected 50 basis point rate cut. Now it is stock buying time according to him. Jim thinks the crisis will soon be over as the Fed has recognized that it is time to worry about your job and home as these issues are more important than inflation. More rate cuts should be on the horizon as well and should continue until they fall well below the 10-year Treasury. The Dow looks to be back on track to 14,500 and the fact that the prediction on reaction to a cut was wrong does not matter to Jim as he is happy to be wrong. Stocks that yield more than Treasury's, or 4.5% are worth buying. You should also get into plays that are dependent on a strong domestic economy like banks, brokers and retailers. Also good are international plays. The face of the market has changed with the cuts and the time to worry is gone. Jim proclaimed that the "bull is back."