Jim Cramer could only explain the stock market's drive to roar higher as investors tapping in to their "animal spirits."
"In the big picture … the excitement stemming from Trump's pro-growth agenda and his business-friendly cabinet picks are producing are getting us to act, to buy stocks when we would otherwise be too circumspect to do so," the "Mad Money" host said.
The idea of animal spirits was coined by John Maynard Keynes, who Cramer described as "history's greatest economists" and investor. In Keynes' 1936 book "The General Theory of Employment, Interest and Money," he defined animal spirits as "a spontaneous urge to action rather than inaction, and not as the outcome of a weighted average of quantitative benefits."
The truth is animal spirits have been oozing from stocks ever since Trump won the election. Investors have been in a euphoria driven by Trump's agenda of lower corporate taxes, a holiday from taxing the repatriation of overseas assets and deregulation.
Companies used to be able to cut costs or buy back stock to engineer an earnings beat in the absence of real revenue growth. The market no longer cares for this kind of an engineered beat anymore, Cramer said.