“If you’re looking at a stock, note that for most stocks the P/E goes up when the Fed raises interest rates and the P/E goes down when the Fed lowers interest rates.”

When interest rates rise from 1% to 6%, people expect a similar yield on their stocks. Price of stocks will drop even if their earnings remain constant till their yield matches the new market interest rate. P/E will drop when interest rates increase.

http://old.swivel.com/graphs/show/10406853

If you watched Jim Cramer’s show through 2008, you will have seen him call the bottom of the market on at least four seperate occasions, only for the Dow Jones to plummet a further 2-3000 points within days to weeks, while his individual stock picks would have sent most to the sidelines in very short order.
We wont mention his frequent contradictions of his own advice, or his permabull stance on markets, through one of the worst recession/depressions in a century.

Apart from the entertainment value as he pounds the table and plays with his sound effects, treat this charachter and his book as one of the greatest rip off merchants of our time.

Whatever about Kiyosaki, you really have to ask if this Cramer is making so much money,(not following his own picks apparently) what he is doing as a puppet on CNBC reading the script which is put before him at the behest of the parent company GE no doubt.