From Hope To Despair: Powell's Soft Landing Catastrophe Unveiled
Jim Cramer just cursed what hope Jerome Powell may have had for reaching a soft landing. The Inverse Cramer contrarian indicator now says Powell has failed.
Given his track record of bad calls, Jim Cramer has officially cursed Jerome Powell. Cramer is an official contrarian indicator. There will be no soft landing. The economy will continue to crash and burn.
What Jim Cramer Said On Mad Money
“Ladies and gentlemen, please put your tray tables up and your seat backs in their full upright positions. We're about to land the plane. We're landing on Wall Street.
We hope you enjoy your ride on Powell Airlines, and we do hope you will travel with us soon. Yet, Fed Chief J Powell has engineered the fabled soft landing. He's tamed outrageously high inflation without crashing the economy straight into the ground (hallelujah!).” Jim Cramer, “Mad Money” on November 14th, 2023
Jim Cramer concludes:
Powell successfully landed a soft landing.
Inflation is stable.
Inflation is transitory.
Powell won.
Inverse Cramer Interpretation
The Inverse Cramer states to do the opposite of whatever Cramer says for investing. There was even a Short Jim Cramer ETF (SJIM) and a Long Cramer Tracker ETF. Those two funds are now defunct.
The Inverse Cramer concludes:
Powell will not successfully complete a soft landing.
Inflation is here to stay.
Inflation will only get worse.
Powell failed.
Jim Cramer Is A “Contra Indicator”
Elon Musk called Jim Cramer a “Contra Indicator” in 2008. No matter what you may think about Elon, he recognized that Cramer was a contrarian indicator as early as 2008.
Granted, Elon is talking his book since Cramer did not recommend Tesla at the time. He wanted to promote Tesla. He could not have asked for a better way to promote Tesla in 2008 than for Jim Cramer not to recommend investing in the IPO.
Jim Cramer is a contrarian indicator. Jim Cramer’s picks are usually a good sign of current media and investor attitudes about the financial markets.
Jim Cramer, like many talking heads, is an entertainer. News and finance can be combined with entertainment to make boring topics entertaining. It is then more digestible.
People enjoy charismatic people. That is evident with the cult of personality, which can be found in presidential candidates and YouTube influencers. Charisma is a defining characteristic of the hive mind because people enjoy listening to people who are smooth talkers. The visual medium of video is more engaging than the written word.
Market Psychology
The Fear And Greed Index is another way to measure investor sentiment. Market insiders and large financial institutions are the first to enter and leave trades.
They have access to more information. They have access to more financial capital. Market insiders and financial institutions understand the financial markets more than many retail investors. They are referred to as smart money.
Average retail investors hear about a hot stock near or at the peak of a trade. They enter because they do not want to miss out on making money on a stock that is going up. The smart money will sell their shares around the peak to make a profit. Retail investors then get caught holding the bag.
Signs that a stock is trending and toward its peak is when the financial media says to “buy, buy, buy!” The current things that the mainstream financial media loves to push are growth and tech stocks.
Market and human psychology are vital to understand. The media preys on people’s emotions to get them into the market. People are told they can get rich if they buy this or that stock or index fund. The attitude about getting rich quickly from the stock market has driven many younger people into the stock market. They enter the stock market without understanding market fundamentals or the Federal Reserve’s role in influencing the financial markets.
The Economy Is Fine, Just Like Bear Stearns
“Bear Stearns is fine…Don’t move your money from Bear. That’s just being silly. Don’t be silly!” - Jim Cramer, “Mad Money” 2008
Bear Stearns was fine until it was not. Bear Stearns went under. So did Lehman Brothers.
The Federal Reserve says that the economy is doing great. Inflation really was low in October at 3.2%. It must be true.
The economy is not on fire. Groceries, car insurance, health insurance, rent, utilities, and anything else you may buy are not going up. Do not believe your lying eyes.
The economy is incredible. Jerome Powell will succeed in his mission to lower inflation. You can live a great life again with inflation only at 2% compared to 10% or higher.
Why do we need a central bank? Why does inflation have to be stable at 2%? Why can’t inflation be zero percent? Do not ask those questions!
What do you think of the Inverse Cramer? How is Jim Cramer a contrarian indicator? Has Jim Cramer ever been right about an investment? Let us know in the comments below!
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Summary
Jim Cramer is a well-known contrarian indicator today. Cramer saying that Jerome Powell has successfully completed a soft landing should be a warning sign for individuals. The economy is not fine. The economy is crashing. Inflation remains high and may continue to become worse. It is a sign that Jerome Powell’s mission to lower inflation ends in catastrophe.
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Thank you for sharing!