I found some excerpts of an interview that BusinessWeek conducted with CNBC’s star personality Jim Cramer. When asked about his outlook for 2007, he doesn’t hide his bullishness:

I think it’s going to be real good… We have incredibly low interest rates. Forget the big mortgage problem. The big story for 2007 is that we just don’t have enough stock. Twenty-nine of the 30 stocks in the Dow Jones average have buybacks. If you take a look at the moves you see in stocks now, it’s because there are just no sellers… Then layer on the fact that the private equity guys have just raised $3 trillion… Those forces are all fabulous for the market.

Now I’m no fan of Cramer’s but I thought I would simply make a note of it so that 12 months from now we can look back and see if he’s right.

Cramer’s a sharp, charismatic and hard working individual but that doesn’t necessarily make someone a great investor. He always prefers to go long on stocks. When stock prices decline, he simply increases his position betting that the market is merely experiencing a correction. This strategy works well during bull markets. Not surprisingly he came to prominence as a successful hedge fund manager during the eighties and nineties — a period when stocks were on a spectacular bull run. During a bear market his strategy could cause him to underperform the market.

I think difficult times are ahead for the stock market — and Jim Cramer’s popularity.