Jim Cramer Breaks Down Record Highs for The Dow and S&P 500

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

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

EXCLUSIVE OFFER: See inside Jim Cramer's multi-million dollar charitable trust portfolio to see the stocks he and Stephanie Link think could be potentially HUGE winners. Click here to see the holdings for FREE.

Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.

If you liked this article you might like

Where's My Toaster? Banks Want Your Business

Where's My Toaster? Banks Want Your Business

24 Stocks Hedge Funds Are Loving Right Now

24 Stocks Hedge Funds Are Loving Right Now

It's Dumb to Think Amazon Will Be Able to Skirt Regulators Forever

It's Dumb to Think Amazon Will Be Able to Skirt Regulators Forever

Citigroup Gives CEO Corbat 48% Pay Raise as Profitability Misses Goal

Citigroup Gives CEO Corbat 48% Pay Raise as Profitability Misses Goal

Worst-In-Class Goldman Sachs CEO Blankfein Gets 9% Pay Raise

Worst-In-Class Goldman Sachs CEO Blankfein Gets 9% Pay Raise