Many market commentators will try to explain why the stock market kicked off 2019 with the best January in decades, but CNBC’s Jim Cramer stressed on Friday that the move wasn’t tied to historical patterns or the calendar.
“You know why stocks had such a good start this year? For the same reason they had such a bad end last year: our Federal Reserve chairman,” Cramer said on “Mad Money.”
Investors have to remember that, when it comes to the stock market, history seldom repeats itself, Cramer said. That’s why he worries about market-watchers who try to “gin up” patterns in the stock market, because they tend to lead people astray.
“I say each year stands on its own. I don’t know a soul who predicted that disastrous December we just went through,” he said. “This was a nauseating, out-of-nowhere, and, most of all, short bear market, and it was very much the Fed’s creation. Almost no one saw it coming because no one thought the Fed would do what it did. In fact, all I heard going into the fourth quarter was the opposite: when the market’s doing well for the year going into September, you’re going to end the year strong. Another useless so-called truism.”
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