Jim Cramer, the host of Mad Money, shared his concerns on Thursday, describing the current stock market environment as a “short sellers paradise,” offering an ideal moment for those betting against U.S. stocks. He pointed to an important deadline approaching: April 2nd when major tariffs are set to take effect.
“We have a tariff deadline, beckoning a frightening deadline, actually April 2nd when the big tariffs are going to kick in, that means we’re headed for a moment of maximum fear as regular stock buyers either flee to the sidelines or move the money to Europe.”
READ ALSO: Jim Cramer Discussed These 10 Stocks Recently and Jim Cramer on These 9 Stocks Recently
Cramer emphasized that he does not see how the White House could back down from its stance, suggesting that if the administration wants to maintain credibility, it has no choice but to move forward with the tariffs. He explained that for President Trump, showing resolve by sticking to his promises is a signal of strength, even if it means sacrificing the stock market in the process. Cramer believes that this willingness to endure short-term market pain in favor of long-term trade objectives is a clear sign that the White House is committed to its strategy. He went on to say:
“For years, we’ve been conditioned to believe that everyone must do their part to get prices down because we don’t want inflation to get out of control. Unfortunately, someone isn’t doing it.”
The rising costs brought on by tariffs are forcing the Federal Reserve to pay more attention to inflation, complicating the financial space. Cramer remarked that this creates a difficult situation for money managers who now feel compelled to sell due to the economic uncertainty stirred up by Washington. Wall Street, he added, is already adjusting its estimates, factoring in the potential long-term impact of tariffs.
“But what happens in this market after the tariffs are implemented? Maybe another month of wrangling, maybe two months, maybe the whole summer. It could be real bad. So we end up with this build-in negative that could sink 10 ships.”
Our Methodology
For this article, we compiled a list of 9 stocks that were discussed by Jim Cramer during the episodes of Mad Money aired on March 13 and March 20. We listed the stocks in ascending order of their hedge fund sentiment as of the fourth quarter of 2024, which was taken from Insider Monkey’s database of over 1,000 hedge funds.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
9 Stocks on Jim Cramer’s Radar
9. Sezzle Inc. (NASDAQ:SEZL)
Number of Hedge Fund Holders: 19
When Cramer was asked about Sezzle Inc. (NASDAQ:SEZL) during the lightning round yesterday, he said:
“Well, I think that there’s a lot of these companies and that’s kind of the problem with when you see so many of the companies in the same sector, we’re going to have to say, no, I don’t like it right here.”
Sezzle (NASDAQ:SEZL) is a payments technology company that provides flexible installment options via its Sezzle Platform. It also offers services such as Sezzle Virtual Card, Sezzle Anywhere, and Sezzle Premium, enabling consumers to shop and pay over time. In November 2024, a caller inquired about the company, and in response, Cramer stated:
“I’ve looked at this stock, it’s a straight-up payments play that reported so much better than expected quarters and I understand why it’s going up.”
8. Oklo Inc. (NYSE:OKLO)
Number of Hedge Fund Holders: 27
During yesterday’s episode, a caller asked if Sam Altman-backed nuclear power startup Oklo Inc. (NYSE:OKLO) being down 50% in the last two months is too early. In response, Cramer said:
“Oh, man. Is it too early? It is way, way too, it is mega too early for that one, buddy.”
Oklo (NYSE:OKLO) focuses on designing and developing fission power plants intended to deliver reliable, commercial-scale energy. In addition to power generation, the company provides services related to the recycling of used nuclear fuel. In February, Cramer commented on the company and said:
“We really don’t need the, if we don’t want them, you know, I’ll tell you what we really don’t need, we don’t need the nuclear fission through Oklo. A total fan favorite. That’s one of the most speculative stocks out there… It’s frightening when you own a stock because of quantum computing prospects and then those hopes are dashed by an authoritative expert.”