CNBC's Jim Cramer on Monday advised that retail investors ignore talk of a potential market top with the economy in recovery mode.
"For all the hand-wringing about how this is as good as it gets for the market, today's action said there's no peak to be seen," the "Mad Money" host said. "If you can't imagine the economy getting much, much stronger than this, the problem is all in your imagination."
The comments come after the S&P 500 closed at a fresh record of 4,187.62, inching up 0.2%. The tech-heavy Nasdaq Composite climbed 0.9% to 14,138.78 for its first record close in more than two months.
The Dow Jones Industrial Average was the lone decliner of the major indexes, dropping about 0.2% to 33,981.57. The index is within 1% of its highs from more than a week ago.
"You could see the money pouring out of the food, drug and packaged-goods stocks, going right into the cyclicals today," Cramer said. "That tells you the market's figured it out, refuting all of this peak talk."
Cramer noted that money managers would dump cyclical stocks, or names that outperform in expansionary periods, if the market was actually nearing a peak. However, Americans are expected to spend more on travel and entertainment as the country fully reopens and pulls away from the pandemic-induced downturn.
That can explain gains in stocks of movie theater operator AMC, elevator company Otis Worldwide and steelmaker Cleveland-Cliffs, whose shares on Monday climbed 13.2%, 7% and 5.3%, respectively, Cramer pointed out.
"This is the start of a new cycle, not the end, one that can benefit all the automakers," he said.
Questions for Cramer?
Call Cramer: 1-800-743-CNBC
Want to take a deep dive into Cramer's world? Hit him up!
Mad Money Twitter - Jim Cramer Twitter - Facebook - Instagram
Questions, comments, suggestions for the "Mad Money" website? madcap@cnbc.com
Business - Latest - Google News
April 27, 2021 at 05:32AM
https://ift.tt/3gGVEwE
Jim Cramer throws cold water on talks about market peak, says economy starting a new cycle - CNBC
Business - Latest - Google News
https://ift.tt/2Rx7A4Y
Bagikan Berita Ini
0 Response to "Jim Cramer throws cold water on talks about market peak, says economy starting a new cycle - CNBC"
Post a Comment