Jim Cramer breaks down the tricky S&P 500 market of 2025, emphasizing AI giants leading gains while small caps lag. In a recent Mad Money episode, he advises investors to stick to his investing playbook, focusing on preparation and a well-thought-out thesis.

Cramer shares personal stories of investing hardships, emphasizing reinvesting dividends and diversification for wealth-building. He learned the hard way not to bet everything on one industry. He advocates for sticking to your thesis and avoiding emotional trading decisions.

Market lessons from Cramer’s Mad Money episode include letting winners run and avoiding dividend traps like Foot Locker. Momentum plays a role, with companies like Eli Lilly and Nvidia capitalizing on long-term trends. Market leadership has been narrow, driven by mega-cap AI-related stocks.

2025 saw a turbulent market, with S&P 500 experiencing a sharp retreat but rebounding to new all-time highs. The Nasdaq is up 11%, S&P 500 up 8.6%, and Dow up 4%. Small caps in the Russell 2000 remain flat. Cramer’s approach of letting winners run has proven successful amid market volatility.

Read more at Yahoo Finance: Jim Cramer delivers straight talk on tricky S&P 500 market