Investors should benefit from market declines in CNBCs in the short term Jim Cramer said Tuesday, suggesting that there are a number of positive catalysts that will propel stocks higher.
“The stock market runs on cycles. When so many run at once, the average values are usually damn reliable,” he said “Bad money” Host said shortly after S&P 500 and Dow Jones industry average both closed 0.2% lower. “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 then Central bank action is a more immediate threat.
Most important among them is the resilient reopening of the economy this summer as Covid vaccinations allow for more activity, Cramer said. Not only did Cramer see more upside in cruise and casino stocks, he was also optimistic about theme park operators like Disney and Cedar Fair.
The booming economy also sets cyclical stocks apart from those in agriculture, such as Deere to steel manufacturers Nucor, Cleveland cliffs and United States Steel Corporation, after Cramer. He added that the real estate cycle still appears to be going strong, which benefits stocks in this space such as Lennar.
“Then there is the bull market for health insurance,” said Cramer, pointing to UnitedHealth, Centene, Cigna, Humana and Aetna parents CVS. “They just say welcome aboard. They can be bought on any rare bath.”