CNBCs Jim Cramer said Monday that he believes stocks have the potential to continue to rebound for the “foreseeable future”, suggesting a number of bullish factors including the slowdown in the IPO and SPAC markets.
“If I said it could end any minute, I would be worse than most of these bears throwing out jeremiads about how we are all doomed because of inflation,” Cramer said. “So I’m going to say that stocks could run until something systemic happens because the market has been doing damn well for the foreseeable future.”
In general, Cramer sees a number of factors contributing to the “disappearance of the sellers,” which helped all three major US stock indices finish on Green Monday and possibly beyond. Here are some of those reasons:
A spate of IPOs can put pressure on the broader stock market as money managers have to sell other holdings in order to participate in the deal, Cramer explained. Currently, there seems to be a slowdown in IPOs after a Increase to start this yearhe said which is positive.
Similarly, Cramer said that End of the frenzy The inclusion of new special purpose vehicles or SPACs benefits the entire market. “They are not missed and if they try to come back they will be avoided,” he said.
“Thanks to several stimulus packages, people didn’t have to sell their holdings to pay their bills. In a normal recession, many investors are forced to liquidate their stocks. This time we avoided it altogether,” said Cramer.
Some companies haven’t reported yet, but the most recent winning round has largely closed. That’s good news, Cramer said, as share buybacks are likely to gain momentum, which can lead to higher stock prices.
According to Cramer, the remaining factors will help reduce selling pressures in the market: less concern about a capital gains tax hike, potential Stabilization in cryptocurrenciesand a lack of alternative investments outside of stocks.