CNBC’s Jim Cramer on Monday said he doesn’t see a market decline coming soon.
After weeks of huge gains for the major indexes, Cramer said this momentum may last longer than some think, and sellers aren’t eager to get out just yet.
“Without huge chunks of selling, we aren’t gonna have that decline,” he said. “Too many people want in and haven’t had the chance. Too few want to get out.”
Cramer conceded that there are reasons for investors to worry about market froth.
For example, semiconductor company Arm has sustained its rally since reporting earnings last week, with shares doubling since before the report. Airbnb rallied today without a clear impetus, which led Cramer to believe it was fueled by “pure momentum.”
To Cramer, Nvidia stock has hit levels higher than many may have thought possible. Even though that kind of feels unsustainable, he said he’s not sure if the stock will see a pullback just yet because it dominates the powerful artificial intelligence sector.
These “individual signs of excess” don’t necessarily mean the rally is close to being over, he said.
“Who wants to walk away from a hot hand, a hot table, a hot dealer and go buy that cashmere sweater I always talk about?” Cramer asked. “Nobody, even when it’s the responsible thing to do, at least for some of your cash.”
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Disclaimer The CNBC Investing Club Charitable Trust holds shares of Nvidia.