Cramer Says The Latest Rotation Trend Is Driven By 'Ravenous Consumers'

U.S. stocks gained on Wednesday after ADP and Moody's data showed private payrolls came in better than expected. This prompted a "wholesale shift" in what stocks are investors are picking up amid expectations for a swift COVID-19 recovery, CNBC's Jim Cramer said on "Mad Money."

What Investors Are Rotating Away From

Investors are in the middle of rotating away from stay-at-home stocks, drug stocks, FAANG stocks, gold and bonds, Cramer said.

Instead, they're buying recovery stocks, including retailers, banks, casinos and companies with easy comparisons.

"Who needs bonds when we are looking at a genuine economic recovery — maybe even a V-shape recovery," the CNBC host said. 

What Investors Are Rotating Into

Investors are buying companies that satisfy pent-up demand after people are no longer "locked up" like they were for months and can now get out of their homes, Cramer said.

Some specific examples include mall owner Simon Property Group Inc SPG and casino operator Wynn Resorts, Limited WYNN, he said. 

"When you see this kind of animal spirits of the market coalescing with the pent-up demand from ravenous consumers, you get the insane gains like we saw today."

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