CNBC’s Jim Cramer on Monday named stocks that could stand to see gains if Donald Trump returns to office, as well as ones that may notch losses — even as he conceded that the former president’s moves can be difficult to predict.
“After this weekend, it sure seems like the Trump stocks are back,” he said. “Just keep in mind that plenty of companies are great enough to transcend politics, and sometimes what counts as a Trump stock can change on a dime.”
Cramer said he is not trying to predict the results of the election, but asserted that Saturday’s assassination attempt has made many believe that Trump is more likely to win against President Joe Biden in the fall. Monday’s buyers seemed to agree with this assessment, with many betting on stocks poised to do well under a Republican administration.
Trump will likely be more lenient when it comes to mergers and acquisitions than Biden, according to Cramer. Big investment banks can be levered to the success of mergers, Cramer said, so investors should pay attention to outfits like JPMorgan, Goldman Sachs, Morgan Stanley and Bank of America, all of which saw gains Monday. He also suggested that the Trump administration would let Kroger acquire Albertsons and Tapestry acquire Capri, deals the Biden administration has tried to block.
According to Cramer, investors may want to avoid stocks related to saving the environment, as Trump doesn’t believe in those measures. Under Trump, the government rolled back more than 100 environmental policies, according to the New York Times. If government subsidies get taken away, Cramer said companies like Enphase, SolarEdge, Sunrun and Sunnova — all of which were down by Monday’s close — could see earnings take a hit.
“Eight years ago, in a moment gripped by political fever, I put a button on my sound board that said ‘trump stock, trump stock,’ he said. “After this weekend’s events, it looks like I have to bring it back.”
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Disclaimer The CNBC Investing Club Charitable Trust holds shares of Morgan Stanley.
