On Thursday, Jim Cramer, the host of Mad Money, discussed the recent turbulence in the stock market, pointing to the lack of clarity from the White House as a major contributor to the decline.
“President Trump has put himself in the awkward position of predicting pain and he’s delivering it to owners of stocks in a way that doesn’t have to happen.”
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He emphasized that the current environment is defined by extreme uncertainty, which is impacting the market and business sentiment. Cramer’s first point centered around the lack of clarity, which he described as one of the biggest challenges facing the market. He warned that business activity would slow down, and hiring in the U.S. could be severely impacted unless clearer signals from the White House are provided.
Cramer predicted that the non-farm payroll report coming tomorrow would likely show weak numbers, marking the beginning of a series of disappointing economic reports. He pointed out that while most businesses oppose the tariffs, what truly worries them is the unpredictability of future actions from the administration.
Moving to his second point, Cramer highlighted the president’s continued threats to impose more tariffs. He stated that the uncertain timeline of these tariff hikes is creating significant anxiety in the business community. Cramer’s third point addressed the widespread caution in corporate earnings forecasts.
He explained that nearly every company reporting earnings during this period has been adopting a cautious outlook, even if their financial performance is strong. This cautious tone, according to Cramer, is largely driven by the fear and uncertainty surrounding the administration’s economic policies. Moving on to the fourth point, Cramer said:
“If we want the consumer who has enough money to keep spending, we need to maintain some degree of wealth effect. It’s not a subsidy, it’s capitalism. I think the consumer’s baffled by the president’s tariff policy.”
In his fifth point, Cramer warned that, in the current climate, saving might not be enough to sustain the economy. He emphasized that no one wants to be caught off guard, and the current environment is ideal for short sellers. Cramer pointed out that in such a volatile and uncertain market, companies are reluctant to go public, as they fear that the negative sentiment could hurt their valuation.
Finally, Cramer addressed the upcoming employment report. He stated that if the report shows a rise in layoffs, investors should not panic about federal job cuts, as this is part of the president’s strategy. However, Cramer stressed that such reports sap confidence and any business hiring in this environment risks “feels like a dope”. He concluded that if stock prices continue to fall, businesses will be reluctant to hire due to a lack of confidence in the market’s stability.
“Here’s the bottom line: I’m saying that the shareholders of great companies shouldn’t have to play the fool and people need to know it’s still worth investing… Wall Street hates uncertainty and until we get some clarity from this administration, it’s going to be tough to advise people to buy anything, even the best companies, because pessimism is the only path investors seem to know.”
Our Methodology
For this article, we compiled a list of 6 stocks that were discussed by Jim Cramer during the episode of Mad Money aired on March 6. 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).
Jim Cramer Commented On These 6 Stocks Recently
6. Diginex Limited (NASDAQ:DGNX)
Number of Hedge Fund Holders: N/A
Mentioning Diginex Limited (NASDAQ:DGNX), a caller asked how long to hold stocks after the companies’ IPOs. In response, Cramer said:
“Okay, I need to see profits, I need to see profits. I’m not seeing profits, therefore I’m not going there.”
Diginex (NASDAQ:DGNX) offers a range of environmental, social, and governance (ESG) solutions, including platforms for reporting, supply chain risk assessments, worker condition data collection, carbon footprint calculation, and advisory services, helping companies manage and report on ESG factors.
Diginex (NASDAQ:DGNX) announced the completion of its initial public offering on January 23, with its common stock starting to trade on January 22. Furthermore, for the year ended March 31, 2024, the company reported a revenue of $1.3 million, a decrease from the previous year’s revenue of $1.6 million.
Additionally, the total comprehensive loss for the year was $4.87 million, an improvement from the previous year’s total comprehensive loss of $9.26 million. Lastly, for the loss per share attributable to the ordinary equity holders of the company, the basic loss per share was $0.51 for 2024, compared to $0.97 for 2023.
5. ZJK Industrial Co., Ltd. (NASDAQ:ZJK)
Number of Hedge Fund Holders: 1
A caller inquired about ZJK Industrial Co., Ltd. (NASDAQ:ZJK) during the lightning round of Mad Money and Cramer said:
“I know it. I know it because of the NVIDIA connection. I have to tell you, they have flat revenues for the last three years… Sounds a little like SoundHound. I’m gonna take a pass on that one.”
ZJK Industrial (NASDAQ:ZJK) manufactures and sells a variety of precision fasteners, structural parts, and metal components, including screws, bolts, nuts, and CNC-machined parts, with applications in industries such as new energy vehicles, electronics, and communication technology. ZJK priced its initial public offering on September 30, 2024, and began trading on the same day.
On February 25, the company provided an update on its growth trajectory throughout 2024, highlighting strong sales performance and expanding partnerships with industry leaders. According to unaudited financial data for fiscal year 2024, ZJK Industrial’s (NASDAQ:ZJK) preliminary figures suggest that its revenue growth is on track to mirror the more than 30% increase seen in fiscal year 2023. It is worth noting that sales from projects with NVIDIA more than doubled in 2024.
