NEW YORK (TheStreet) -- TheStreet's Jim Cramer notes the recent gains in the market matter, including the S&P 500 hitting 2,000 for the first time and the Dow hitting a new all-time high Tuesday. But he adds it also matters how the market gets there.

Cramer says right now the path is through activism. He states the stock market is currently in an activist and mergers and acquisitions phase and advises investors not to leave it yet. Cramer believes more M&A is upcoming and says confidence is returning.

His only concern, though, is Europe, which he says is slipping back into a recession as industrial production is slowing. Cramer says he likes the banks, technology stocks and non-residential construction. He also points out earnings season is done, at which point "the mice can play."

Must Watch: Jim Cramer Likes Banks, Technology and Non-Residential Construction

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