Jim Cramer sees more positives than negatives for the market ahead

CNBC’s Jim Cramer told investors on Monday that an economy was on the horizon that could spur growth without letting inflation run rampant. According to Cramer, this is an ideal situation for the stock market.

Cramer first pointed to the July jobs report released last Friday by the U.S. Department of Labor. Jobs were added by 187,000 last month, just below the Dow Jones forecast of 200,000, and the unemployment rate was 3.5%, according to the report. Cramer said the numbers suggested subdued inflation and moderate employment growth, which could indicate the best time to invest.

“There are a lot of other positives that can be picked up for stocks,” Kramer said.. “I think the most important issue here is that we’re getting exactly what Wall Street always wanted: growth with lower inflation. That’s what happened last week after a terrible week. is.”

He added that once the rate cuts finally begin (which he said he expects sometime next year), the yield curve will return to normal from an inverted yield curve. Many people who have sold stocks because of bond yields “suddenly want to clench their fists and buy stocks,” he said.

Cramer also cited several other factors suggesting a positive economic outlook in the United States, including accelerating manufacturing growth after years of stagnation. Kramer said the earnings season was strong, with many companies reporting positive sales and profits.

Kramer’s final point is good earnings, good economy and good structure, he said.

“When the markets go down like they did on Friday — not today because they went up so much on Friday — they understand that we need to realize that the economy is doing better than anyone could have imagined a few months ago,” he said. It’s time to do it,” he said. “So look for something you can buy when you’re bearish and pull the trigger.”