CNBC’s Jim Cramer said Thursday the uncertainty over the Covid Delta variant in the US is currently helping the stock market, claiming it created “the best of all possible worlds” for now.
“Because we can’t tell whether Delta has peaked, we have to give in [Fed Chairman Jerome Powell] The benefit of the doubt in saying that he has to hold back with the tapering, especially since business has obviously slowed down in recent months, “said the Mad Money presenter, referring to the central bank’s decision a day earlier, their monetary policy will remain very expansive for a little longer.
On the flip side, Cramer said there was some evidence that the worst of this Covid wave was over, which should help boost virus-sensitive parts of the economy after experiencing a temporary slowdown.
As a result, Cramer said that “we can buy the travel and leisure stocks, the retailers, the oils, and not to mention the banks – they will all do better in a post-pandemic world.”
“In short … you have the best of all possible worlds,” added Cramer, suggesting that this is a major reason Wall Street rallied for the last two sessions after a acidic start to trading week. All three major averages are now positive for the week.
Many investors are also feeling better about ailing Chinese real estate developer Evergrande, Cramer said, which will help improve sentiment during a historically troubled time for stocks.
“The bottom line? The lack of two negatives is indeed one positive and that’s how you got this great rally,” said Cramer.