Now the bears are going to come on TV. They're going to say the [rate] cut's terrible for inflation. It's going to cause the dollar to come down. It's going to cause oil to spike. That the Fed doesn't know what it's doing. I need you to know that these are people who just got it wrong. They got it really, really wrong. They didn't think the Fed could change on a dime, they didn't think that there could be rate cuts. They just got it wrong. We are not done going higher.
If you remember at the beginning of the year, I predicted to you that the Dow would go to 14,500 by year-end because we would have two rate cuts. Now a 50 basis point cut should count as two cuts. This takes us off the detour and puts us back on the road to 14,500.
Now the Fed is on the team. They're with the good guys.
The bottom line: As of today, the whole face of the market has changed with these cuts. The time to be worried has come and gone. Because finally the Fed is facing the right direction and making the right moves. Ladies and gentlemen, the bull is back.
~ Jim Cramer, CNBC's "Mad Money," September 19, 2007
(The DJIA closed at 13,816 +76.)
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