Investors should benefit from market declines in the short term, CNBC’s Jim Cramer said Tuesday, suggesting that there are a number of positive catalysts that will drive stocks higher.
“The stock market is cyclical. When so many are running at once, the averages are usually pretty damn resilient,” said the host of “Mad Money,” shortly after the S&P 500 and the Dow Jones Industrial Average both fell % had decreased. “So I think you have to keep buying the dips. There is just too much to like.”
While he said the Federal Reserve would eventually adjust its highly accommodative monetary policy, Cramer claimed there was a “rush of minor bull cases” to support the market until the central bank’s actions pose a more imminent threat.
Most important among them is the resilient 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 was optimistic about theme park operators like Disney and Cedar Fair.
Mall operators like Simon Property Group and their tenants like L Brands and Gap have also recovered more than expected, Cramer said.
The booming economy is also lifting cyclical stocks from agricultural stocks like Deere to steelmakers Nucor, Cleveland-Cliffs and United States Steel Corporation, according to Cramer. He added that the real estate cycle still appears to be strong, which benefits stocks in areas like Lennar.
“Then there’s the bull market in health insurance,” Cramer said, pointing to UnitedHealth, Centene, Cigna, Humana and Aetna-Parent CVS. “They just say welcome aboard. They can be bought on any rare bath.”