CNBC’s Jim Cramer on Monday listed stocks that could profit if Donald Trump returns to the White House, as well as stocks that could lose. He acknowledged, however, that the former president’s moves are difficult to predict.
“After this weekend, it looks like Trump stocks are back,” he said. “Keep in mind that many companies are great enough to transcend politics, and sometimes what counts as a Trump stock can change in the blink of an eye.”
Cramer said he doesn’t try to predict the outcome of the election, but argued that Saturday’s assassination attempt has led many to believe that Trump is more likely to beat President Joe Biden in the fall. Monday’s buyers seemed to agree with that assessment, with many betting on stocks that would do well under a Republican administration.
Trump is likely to be more lenient on mergers and acquisitions than Biden, Cramer said. Big investment banks can be leveraged to make mergers successful, Cramer said, so investors should pay attention to the likes of JPMorgan, Goldman Sachs, Morgan Stanley and Bank of America, all of which posted gains on Monday. He also suggested the Trump administration let Kroger acquire Albertsons and Tapestry Capri, deals the Biden administration has tried to block.
Cramer said investors may want to avoid stocks that have to do with saving the environment because Trump doesn’t believe in those measures. Under Trump, the government has rolled back more than 100 environmental policies, according to the New York Times. If government subsidies are withdrawn, Cramer said companies like Enphase, SolarEdge, Sunrun and Sunnova — all of which were down Monday — could take a hit to their profits.
“Eight years ago, in a moment of political fever, I put a button on my soundboard that said, ‘Trump stock, Trump stock,’” he said. “After the events of this weekend, it seems like I need to bring it back.”
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Disclaimer The CNBC Investing Club Charitable Trust owns shares of Morgan Stanley.