By: Tom Brennan
“You know we’re in trouble when people get too enthusiastic – that is the sign of a top, not a bottom,” Cramer said. “But when they’re pessimistic, when they’re skeptical, that’s how you know the market still has fuel to run.”
But what about this market right now? Cramer laid out six ways that pessimism and skepticism are helping out.
(click below for 1-5; here's #6)
6. Lastly, there’s housing. The bears are stressing this sector, but as USA Today reported, home foreclosures posted their first annual decline in five years. A peak in foreclosures puts banks in position to finally unload some of the reserves they’d set aside to protect against mortgage losses, which will translate into higher normalized earnings.
And once Washington’s done with its attempts at reform, Cramer said, the banks will be “ready for a monster move.”
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