TheStreet’s Jim Cramer says sluggish wage growth is one reason why the Federal Reserve woke up to reality this week. Cramer wrote on Real Money that the number one reason for the Fed’s tempering was that risks tilted suddenly toward deflation. Cramer also wrote that ‘the digital economy, coupled with the new nightmare of globalization, is producing a lower standard of living.’ With the Fed slowing its expected pace of tightening, Cramer said there’s a bear market for financials because they needed higher rates. He also said there’s a bear for health care, because it’s been fodder for the presidential campaign. But he added there’s a bull market for industrials and technology stocks because the dollar has topped against some major currencies. Cramer says that’s one of the reasons why he likes Alphabet (GOOG), Microsoft (MSFT), Cisco (CSCO), Eaton (ETN) and Parker Hannifin (PH), because they all benefit from a weaker dollar. Cramer also said the weaker dollar means he also now likes IBM (IBM). Cramer is portfolio manager of Action Alerts PLUS.
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