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Cramer advises investors to continue investing based on the ‘new normal’

CNBC’s Jim Cramer on Wednesday advised investors to continue investing based on the “new normal.”

The recommendation came after the market, with the exception of one major average, took a dip for the first time in three trading days.

“Many believe all these themes are ephemeral. They think that Clorox is ephemeral, Lowe’s, Brunswick, Thor Industries, Camping World — not true,” the “Mad Money” host said. “Now they’re realistic; they’re longer-lasting.”

The Dow closed down 170 points, or 0.7%, at 26,119.61. The S&P 500 pulled back 0.4% to 3,113.49 at the market end. The Nasdaq Composite rose for the seventh session in the last eight after ticking up 0.2% to 9,910.53.

Lowe’s stock rose 2.9% to a new high. Shares of Clorox increased by 1.6%, and Brunswick stock moved 1%. Thor dipped 0.3% and is off about $5 from its 52-week high. 

The recovery stocks, such as airlines and retail, lost momentum Wednesday after investors digested news out of China. Beijing, China’s sprawling capital, on Tuesday said it would shut down its schools and cancel a slew of domestic flights after new coronavirus infections picked up.

Several U.S. states have also seen case counts rise in recent days, which has raised worries of a resurgence in Covid-19 as the country continues its phased reopening.

As of Wednesday afternoon, confirmed Covid-19 infections in the U.S. topped 2.1 million. The death count stood at 117,622, according to data compiled by Johns Hopkins University.

“I expect this to be the new normal for the rest of the year, maybe longer,” Cramer said. “That’s why these social distancing stocks have become some of the best investments around. I think they’ll stay that way until we get a vaccine.”

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