Jim Cramer shared his insights on the potential impact of a second Donald Trump presidency on the stock exchange.
What happened: Cramer suggested that overall market sentiment could improve if Trump were re-elected, CNBC reported.
He explained that Trump’s reliance on stock prices to determine his own course could lead to actions that could lead to a more positive market.
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“If you think Trump is more likely to become president, the overall tone of the stock market will improve, if only because the man can’t stand to see the stock fall. After all, the major averages are the barometer he uses to gauge his own job approval.”
“Whether you love him or hate him, he’s good for your portfolio.”
He also predicted that the Trump administration would likely be more flexible on mergers, which could benefit companies like Kroger Co. (NYSE:KR) and Tapestry Inc. (NYSE:TPR).
In addition, Cramer suggested that Trump’s favorable stance on gas and oil could benefit companies such as New Fortress Energy Inc. (NASDAQ:NFE) and Cheniere Energy Inc. (NYSE:LNG).
However, Cramer warned that a Trump presidency could lead to stricter trade rules, particularly with China, which could not bode well for companies like Nike Inc. (NYSE:NKE) and Starbucks Corp. (NASDAQ:SBUX).
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He also noted that Trump has long been interested in the stock market, saying, “He loved talking about the stock market and appeared on this show often because even though he was in real estate, he loved stocks.”
Why it matters: The 2024 election cycle was marked by major developments, including a surge in Trump’s chances of winning after the first debate. Trump’s chances of winning in November rose to 64%, according to blockchain bettors.
Trump has also made a notable shift in his stance on cryptocurrencies, pledging to overhaul Biden’s regulatory framework for digital assets. The move reflects his broader strategy to connect with the growing number of cryptocurrency supporters.
During the presidential debate, Trump also criticized Biden’s handling of tariffs and trade policy, warning that China’s economic actions could lead to it gaining undue influence over the United States.
These factors could have major implications for the market if Trump is re-elected.
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This article Jim Cramer Says Trump’s Return to the White House Could Be ‘Good for Your Portfolio’: ‘Love Him or Hate Him’ originally appeared on Benzinga.com
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