- CNBC's Jim Cramer said the Covid delta variant is unlikely to derail the U.S. economic recovery in the coming months.
- The "Mad Money" host said he remained confident due to recent positive outlooks offered by real estate investment trusts.
CNBC's Jim Cramer said Wednesday he remains confident in the U.S. economy in the coming months despite the significant rise in Covid delta infections recently.
As Wall Street seeks insight into the strength of the recovery, the "Mad Money" host said he was focusing on the quarterly results of real estate investment trusts and those firms' executives. Other areas, like housing and the auto market, have too many distortions at present, Cramer said.
"[REITS] have a lot on the line. They and their tenants need to make not short-term commitments based on Covid ... but longer-term commitments based on everything, and these companies are telling us that they're going pedal to the metal right now in terms of sign-ups," Cramer said.
"It's one of the best environments in history for retail real estate. From Kimco for strip malls, Tanger for factory outlets, Simon Property for malls, Federal Realty for shopping center, well, it's all good," Cramer said, noting Federal Realty just raised its 2021 earnings guidance Wednesday evening when it reported second-quarter results.
Cramer also pointed to comments earlier this week from Simon Property Group CEO David Simon, who told analysts retail sales at its properties this June were equal June 2019 levels.
"When Tanger, the outlet company, reported yesterday they felt compelled to dramatically raise their guidance. Again, you don't bump the full-year forecast unless you're feeling confident," Cramer said.
The aforementioned REITs all deal with various types of tenants, Cramer said, contending it's "encouraging" for investors that management is positive about the next year even at a time when others are uncertain about the economic outlook. Consumer spending is large portion of U.S. economic activity.
"When so many different kinds of retailers are predicting a healthy consumer environment that's getting stronger, not weaker, by the day, the week, the month and the year, who are we to say they're wrong?" Cramer said. "I know these Covid numbers are scary ... but the people who take the virus seriously are already immunized and the people who don't take it seriously won't change their behavior even in the middle of a serious outbreak, which means the economy should end up being fine, if not stronger than we think."
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