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As mom & pop buy, should you sell?

(Click for video linked to a searchable transcript of this Mad Money segment)

If Mom and Pop money is flowing into stocks should your money start flowing out?

That's the kind of chatter Jim Cramer heard on Wall Street, Monday after the Wall Street Journal said stocks had regained broad appeal.

Specifically, the paper noted that U.S. stock mutual funds had attracted more cash this year than they have in any year since 2004.

And the inflow is pretty substantial; Investors sent $76 billion into U.S. stock funds in 2013. From 2006 through 2012, they withdrew $451 billion.

That would seem bullish except, "The renewed optimism among retail investors is considered by many professionals to be a warning sign, thanks to a long history of Main Street arriving late to market rallies," added the paper.

To make circumstances all the more concerning, both the Dow Jones and the S&P 500 have been trading at or near all time highs for much of the year.

Is the bull over?

Steve Cole | The Image Bank | Getty Images

Cramer doesn't think so.

"I simply refuse to buy into the notion that the market is bad now," noted the Mad Money host, simply because a large number of individuals have enough confidence to invest, again.

That kind of logic just doesn't fly with Cramer when fundamentals suggest just the opposite.

As far as Cramer can tell, catalysts that have been driving the market all year show no signs of abating. For example:

1. Alternatives unattractive. There just aren't other investments that are nearly as compelling as stocks. "Bonds just don't provide enough return," he said. And most derivative investments just aren't worth the risk.

2. Market is not expensive. Currently the S&P 500 is trading about 14.7 times forward earnings. "Historically, that's not terribly expensive," Cramer noted. "True, last year the multiple was lower, at 12.6, but when you consider the damage that the debate over the fiscal cliff caused as well as the Washington sandwich of sequester, you had to anticipate a shrinking multiple at that time."

3. Money is cheap. Cramer argues that it's currently a very good time to be a company because management can leverage funding at historically low rates. In turn, growth should follow and shares should inflate.

4. Global recovery. Despite the fits and starts overseas, Cramer believes both China and Europe are getting stronger. And overseas strength should drive the profitability of many American companies.

5. Fed backstop. Whether the Fed tapers in a month or a year, Cramer believes the central bank is committed to wealth creation by inflating stock prices. That's a major tailwind for all shareholders.

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All told, Cramer can't imagine putting money to work anywhere but the stock market.

"That's not to say there aren't areas to avoid because they've gotten expensive," Cramer noted. "But to pull out now simply because individual investors are back? Never."

Call Cramer: 1-800-743-CNBC

Questions for Cramer? madmoney@cnbc.com

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