Cramer said he wasn’t trying to predict the election outcome, but he stressed that Saturday’s assassination attempt had made many people believe Trump was more likely to beat President Joe Biden in the fall. Buyers on Monday appeared to agree with that assessment, with many betting that stocks were poised to do well under a Republican administration.
Cramer said Trump is likely to be more lenient when it comes to mergers and acquisitions than Biden. Cramer said big investment banks could benefit from merger success, so investors should pay attention to firms like JPMorgan, Goldman Sachs, Morgan Stanley and Bank of America, all of which saw gains on Monday. He also suggested that the Trump administration could allow Kroger to acquire Albertsons and Tapestry to acquire Capri, deals that the Biden administration has tried to block.
According to Cramer, investors may want to avoid stocks tied to environmental conservation. During the first Trump administration, the government rolled back more than 100 environmental policies, according to New York times.
If government support is removed, companies like Enphase, SolarEdge, SunRun and Sunova — all of which were down by Monday’s close — could see their profits hurt, Cramer said.
“Eight years ago, in a moment of political fever, I put a button on my soundboard that said ‘Trump Arrow, Trump Arrow,’” he said. “After the events of this weekend, it seems I have to bring it back.”
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Disclaimer CNBC Investing Club Charitable Trust owns shares of Morgan Stanley.
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