Jim Cramer says he’s getting more constructive about stocks

CNBC’s Jim Cramer said Thursday he was becoming more constructive in the stock market after weeks of caution and urged other investors to be “less cynical.”

The comments came after a large rally on Wall Street that saw the S&P 500 post its biggest jump since March, gaining 1.7% on the session. The blue chip Dow Jones Industrial Average added 534.75 points, or 1.6%, while the highly technological Nasdaq rose 1.7%.

“Some would say that today’s movement is just a rally of relief after so much negativity, others might call it a joke of a movement that will attract people and make them lose their fortunes,” he said. Cramer said. “You could say that this is a rebound in profits after the superb figures of Bank of America, UnitedHealth Group and Morgan Stanley, which is closer to the truth.”

However, he added: “I think it’s bigger than that.”

“This gathering is about the common sense realization that our current problems can be solved as companies turn challenges into opportunities,” Cramer said, referring to supply chain issues such as shortages of semi- drivers and congestion in ports. Other economic complications include companies that have difficulty filling vacancies.

“Bears are so cynical, so jaded, that they have forgotten the lessons of history. Time and time again we have had impending disasters that kind of faded away when people took action to stop them.” Cramer said, acknowledging his cautious market outlook in September and October.

Now that the period of seasonal weakness is in the rear view mirror, Cramer said he was getting “more constructive.” He pointed to the Biden administration’s efforts to ease congestion at west coast ports as one of the reasons for the long-term optimism.

“I think that the problems that plague this economy are not preludes to anything. They are not heralds of disaster,” he said. “I urge you to imagine the seemingly intractable as treatable.… Let’s all be a little less cynical so that we can try to make a little more money for all of the people who don’t have enough.”

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