CNBC’s Jim Cramer Cautioned Against Investing Based on Trump’s Comments
CNBC’s Jim Cramer cautioned investors on Thursday that President Donald Trump’s comments, while highly publicized, do not always yield solid investments. Cramer emphasized that investors should take some of the president’s big-picture proclamations with a grain of salt, as broad ideas are not what usually move the market.
Cramer noted that some of Trump’s plans may not play out as expected, citing the president’s sweeping energy policy aimed at encouraging drilling. Oil producers may not immediately take advantage of these allowances, making the wider group not investible just yet. Additionally, Trump’s demands to lower interest rates hold little weight, as the Federal Reserve makes those decisions.
However, Cramer pointed out that Trump can invoke some catalysts, such as the White House’s recent announcement to partner with Big Tech names like Oracle and Nvidia to invest in artificial intelligence infrastructure. This major data center buildout verifies the demand for products from companies like Nvidia.
Cramer also highlighted banks as a theme poised to see lasting success due to Trump’s proclivity for deregulation. He noted that BlackRock is tied to the bull market Trump wants to fuel, and Goldman Sachs stands to benefit from increased merger activity. However, Trump’s criticism of Bank of America for supposedly refusing to serve conservatives is not an investible idea, as the bank denied the accusation.
“Trump wants the banks to succeed, and a higher stock market is the badge he craves,” Cramer said. “Even if he’s saying bad things about Bank of America.”
