Investors should take advantage of market pullbacks in the near-term, CNBC’s Jim Cramer said Tuesday, suggesting there’s a range of positive catalysts that will propel stocks higher.
“The stock market runs on cycles. When you have this many running at once, the averages tend to be pretty darn resilient,” the “Mad Money” host said, shortly after the S&P 500 and Dow Jones Industrial Average both closed lower by 0.2%. “That’s why I think you need to keep buying the dips. There’s just too much to like.”
While he said the Federal Reserve will eventually adjust its highly accommodative monetary policy, Cramer contended there is a “stampede of smaller bull cases” to support the market until central bank action is a more imminent threat.
Chief among them is the robust reopening of the economy this summer as Covid vaccinations allow for more activity, Cramer said. In addition to seeing more upside in cruise and casino stocks, Cramer expressed optimism around theme-park operators such as Disney and Cedar Fair.
Mall operators like Simon Property Group and their tenants such as L Brands and Gap have also bounced back stronger than most expected, Cramer said.
The booming economy also is lifting cyclical stocks from those in agriculture such as Deere to steel makers Nucor, Cleveland-Cliffs and United States Steel Corporation, according to Cramer. He added that the housing cycle still appears to be strong, benefiting stocks in the space such as Lennar.
“Then there’s the health insurance bull market,” Cramer said, pointing to UnitedHealth, Centene, Cigna, Humana and Aetna-parent CVS. “They are simply saying welcome aboard. They can be bought on any rare dip.”