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Jim Cramer throws cold water on talks about market peak, says economy starting a new cycle

CNBC’s Jim Cramer on Monday urged that retail investors ignore talk of a potential market top with the economy in recovery mode.

“For all the hand-wringing around 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 believed. “If you can’t imagine the economy getting much, much stronger than this, the problem is all in your imagination.”

The comments clock on 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 gold medal record close in more than two months.

The Dow Jones Industrial Average was the lone decliner of the major indexes, depart 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 well-to-do pouring out of the food, drug and packaged-goods stocks, going right into the cyclicals today,” Cramer said. “That charges you the market’s figured it out, refuting all of this peak talk.”

Cramer noted that money managers would fling down cyclical stocks, or names that outperform in expansionary periods, if the market was actually nearing a peak. However, Americans are demanded to spend more on travel and entertainment as the country fully reopens and pulls away from the pandemic-induced downturn.

That can describe gains in stocks of movie theater operator AMC, elevator company Otis Worldwide and steelmaker Cleveland-Cliffs, whose portions 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 required.

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