Investors should take full advantage of market downturns in the near future, Jim Cramer told CNBC on Tuesday. According to him, there are a number of positive catalysts that will push stocks even higher.
“The stock market works in cycles. When there are so many at once, the averages are really very resilient,” he told Mad Money shortly after the S&P 500 and Dow Jones Industrial Average closed 0.2% lower. you should continue to buy in declines. There’s just a lot I like. ”
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Although, according to Cramer, the Fed will eventually adjust its highly relaxed monetary policy. But until the central bank’s activities pose an immediate threat, Cramer says there are several “smaller frightened bulls” that support the market.
The biggest of them is the strong reopening of the economy this summer, thanks to the covid vaccination, which allows for greater activity, Cramer said. He therefore sees the potential in shares of cruise companies and casinos, and has also expressed optimism about amusement park operators such as Disney and Cedar Fair. Department store operators such as Simon Property Group and their tenants, such as L Brands and, have also rebounded harder than expected, Cramer said.
The growing economy, according to Cramer, is also increasing cyclical stocks from farms like Deere to steelmakers like Cleveland-Cliffs and the United States Steel Corporation. He added that also the cycle on real estate still seems to be strong and benefiting stocks in the industry such as.
“And then there’s the bull health insurance market,” Cramer said, pointing to Centene, Cigno, Humana, and Aetna’s mother. “They just say welcome aboard. They can be bought at any exceptional drop.”