Cramer Says Fiscal-Cliff Deal Is Good for Stocks -- Here's Why
NEW YORK ( TheStreet) -- Lindsey Bell: So we got the fiscal-cliff deal at the 12th hour last night. We're you happy with it? It seems like there's a little bit of can-kicking with spending cuts and such.
Well, I think you're not supposed to be happy with the deal. You're not happy with a deal where everybody pays a little bit more because of the increase in the payroll tax, and actually I pay a lot more. I'm now in the 53% bracket, which is disturbing to me, but that's the way it is and we had a good run. Speaking more importantly about what I care about: capital gains and dividends. They are being taxed very reasonably, which is good for stocks, certainly better than bonds. Certainty does matter. It's easy to now say, "OK, listen, let's gird for the next battle in partisanship."
I find that you have to accept the fact that there's a lot of money coming in today. Some of that has to be because we've got certainty. We do have some earnings coming up. I don't think all the earnings are going to be good. So it's not a bad opportunity to straighten out your portfolio. Get out of stuff that won't be that good in the fourth quarter. That what Stephanie
It was the big, bad event and don't overly focus on the debt ceiling because that will be resolved too, and it may not be resolved the way you like it, just like the cliff wasn't resolved the way you like it. But resolution itself is good for the stock market, and I care about the stock market.
Lindsey Bell: All right. Now the stocks. What about defensive stocks? We've got to wait two more months to get an issue on the spending cuts.
Well, do we really? I don't know. Lockheed Martin was good the whole way. Boeing was good the whole way. United Technology is a stock we like very much. These companies are international companies with a very big domestic component for defense, obviously. We avoided a very big, very tough defense cutback, and the Republicans -- if you look at what they talk about -- they are for spending cuts everywhere except for defense. So that will be the least cantankerous area.
OK. So the stock market is up about 4% in the past two days. Do you get in here or wait for a dip, maybe?
Look, I'm from the school, which says, "I don't buy up 2%, 3%." I just don't and you just say, "OK, listen, maybe you have some stocks already -- that's great." You sell some of your losers into strength that you shouldn't have. But, no, I can't, I have a discipline and my discipline doesn't allow me to buy at these levels.