Jim Cramer says near-term Covid delta variant concerns won't threaten long-term stock market gains

CNBC’s Jim Cramer said Thursday investors should keep a long-term focus on the U.S. economic recovery despite near-term concerns about a rise in coronavirus cases associated with the delta variant.

“Don’t let all these worries freak you out,” the “Mad Money” host said. “All the people who refuse to get vaccinated, they’re a major problem for the country, but I’m betting they won’t do that much damage to the stock market.”

Cramer labeled the country’s current increase in Covid infections “the great American snag” and said it’s caused some investors to be concerned about a slowdown in economic growth. That’s a major reason why bond yields have fallen this month to “ridiculously low levels,” he said. The benchmark 10-year Treasury yield traded at 1.277% Thursday evening, having stood at almost 1.5% to begin July.

Delta variant fears also catalyzed the three-day decline in the S&P 500 that began last week and was punctuated by Monday’s aggressive sell-off across Wall Street, Cramer said. All three major U.S. stock indexes finished in the green Thursday.

“Now here’s the good news: … The great American snag can end,” Cramer said. He predicted that will happen as more unvaccinated people in the country build up coronavirus immunity, perhaps deciding to get a Covid shot after seeing the damage caused by the delta variant, or through natural infection.

“I’d much rather the former than the latter, but either way we’re one step closer to the fabled herd immunity,” he said.

“Next thing you know, we get unsnagged, bond prices sell off, the banks can rally again, the homebuilders catch-up, inflation cools down, supply chain blockages get cleared. Plus, we’ve got those fabulous children tax credit [checks] breathing a lot of life into back-to-school retail,” Cramer said.