Cramer has already spoken about how the consumer is stronger than many people think. But recently, only do-it-yourself and bargain retailers like Home Depot and Costco were considered to be stable investments by Wall Street.
“After this week, it’s clear that we’re getting terrific results from all kinds of retailers,” Cramer said. “The numbers are so big that you have to think there’s been a serious pickup in shopping, not just back to where we were in 2014, but, in many cases, to where we were in the early-to-mid-2000s.”
Still, Cramer warned investors not to jump the gun. Because the VanEck Vectors Retail ETF is largely in control of the sector, the best strategy would be to wait for it to pull back before buying the improving retail names, he said.
“Given that the RTH has been roaring lately, I think you’ll end up overpaying if you don’t wait for a little bit of a downturn,” the “Mad Money” host said. “But in truth, retail executives feel that job creation [and] stability, coupled with some genuine economic booms often related to cheap energy in the Southeast, are all combining to create a much more positive backdrop.”