By James J. Cramer in New York Magazine:
An equity shortage, a new M&A boom, a weak dollar, and lower interest rates point to another year of big winnings on Wall Street.
Companies don’t need the stock market anymore. Sure, investors love it when the market goes up, and those who own stocks make tons of money, as they did in 2006, a year that defied every skeptic in its march to record highs. But for many corporations and their managements, the stock market is just plain unnecessary, atavistic even. They don’t need the money the market can provide, and they hate the hassle of having a public stock. That’s why, in 2006, we got a record number of takeovers, mergers, and private-equity buyouts. And that’s why I think 2007 will be even bigger than 2006.