Jim Cramer Says Banks Like Wells Fargo Are the "Real Measure of the Economy's Health"

Wells Fargo & Company (NYSE:WFC) is one of the stocks Jim Cramer commented on along with the recent macro rally. Cramer mentioned the stock and called the banks the “most important element of this rally,” as he remarked:

“I’m going to start with the most important element of this rally. It’s built on the backs of the most important group in the entire market, which are the banks. They’re the real measure of the economy’s health. After consolidating, post earnings, the group is roaring, led by Wells Fargo and Citi, Bank of America, JPMorgan, right there with them. Picture perfect.”

Wells Fargo & Company (NYSE:WFC) provides financial services, including banking, lending, investment, and wealth management solutions. Cramer mentioned the stock during the October 21 episode and said:

“Okay, so I gotta give you the, because I play with an open hand, Wells Fargo’s one of the largest positions for my trust. When it went up, it spiked. Both Jeff Marks and I said, you know what, we’ve got to trim a little. So we trimmed a very small amount. There’s some stock that we bought in the 30s. So I can’t tell you go buy it if I actually just sold some today. I happen to think the bank at 13 and a half times earnings is very cheap, though. It’s just that I can’t have a huge position… as much as I like Charlie Scharf, the CEO. Look, I can’t ignore the issues facing regional banks for the past couple of weeks, but for all the fear out there, I’m not seeing anything systemic yet.”

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Disclosure: None. This article is originally published at Insider Monkey.