CNBC’s Jim Cramer has realized that it can actually hurt investors to be cynical in this beast of a market.
“So much of what’s driving this market can seem artificial, but Wall Street doesn’t make any distinction between natural drivers and artificial ones. They’re all the same,” the “Mad Money” host said.
And there’s no shortage of artificial drivers. Credit Suisse upgraded Carnival Cruise Line’s stock to “buy” from “hold” and boosted its price target — a seemingly obvious move given the broader strength in cruise line bookings — and the stock still went up.
Piper Jaffray’s price target increase for the stock of Amazon to $1,400 a share from $1,200 also sent it soaring. The reason for the boost? Analysts had underestimated how much shares of Amazon would rise.
“Is that a good reason to buy a stock, a price target increase? Hey, it’s still worse than because of an obvious earnings boost from a tax cut, or an obviously stronger consumer, or an obvious relative underperformance compared to similar sectors. It’s what gets things moving these days,” Cramer said. “You’ve got to understand that in a beast bull market like we’re in, we don’t look through these kinds of situations to find fault in their reasoning. We simply recognize, ‘Yeah, that’s enough to send a stock to go higher. I want in.'”