In a recent appearance on CNBC’s Squawk on the Street, Jim Cramer commented on the potential impact on Wall Street from President Trump’s potential actions against Denmark, Panama, and South Africa. Amongst other actions, the President has vowed to make Denmark’s Greenland territory a part of the US and threatened to cut funding to South Africa over allegations of land confiscations.
Cramer believes that the “street sells” in response to these actions. He stated “That’s what happens. I’m not in any hurry to buy anything. We just were at a high. We had some big turmoil in tech as it was. We got a lot of quarters this week.” However, while the absolute near-term outlook might be uncertain, all sectors aren’t bad. According to Cramer “The only stuff I would think about buying are the drugs, medical device. Because their business, for the most part, not made in China, not made in Mexico. So those are the ones.”
One outcome that was clear from the November election campaigns was that President Trump differs significantly from President Biden when it comes to policy. However, he might continue one aspect of the previous administration. Cramer shared that when it comes to drug prices “Remember, the IRA [Inflation Reduction Act], under Biden, they did lower the prices. I think that’s something that President Trump would continue to do.” He also believes that “It’s a bit of a canard, the drug companies charge a lot here.”
One interesting discussion during the show surrounded hedge fund billionaire Paul Tudor Jones‘ comments about the general economic climate being “precarious.” Cramer took issue with Jones’ word choice. He started by outlining “I want to point out that once again, we have billionaires on. And billionaires always say it’s incredibly precarious.” As a result, Cramer pointed out that “People at home therefore sell and they miss great opportunities to buy because they hear that it’s really precarious from someone who’s a billionaire so therefore it is.”
However, the CNBC TV host urged people to keep investing as “you can’t make money listening to a billionaire because they already have made money.” When asked whether his advice meant that he was encouraging stock buying at a time when markets were dipping he replied “No, look I’m not saying to buy. I’m just saying that’s a very tough word, precarious makes it sound like that we are in a systemic moment. I save that for 2007, 2008 when we were precarious.”
Comparing the President’s current administration to the previous one he commented:
“I think that the president gave us last time some tax cuts ahead so you kind of felt that there was some good things happening. Here he comes up with this first which makes it feel like that you justify what he said on Friday when he said he didn’t care about the markets. Ultimately, David, he does care about the markets. And I don’t think he wants them down badly.”
Cramer also speculated that if tariffs make Canadian oil more expensive then US producers could be incentivized to produce more. He doesn’t “Think they’re going to produce much more because that’s their whole . . .they’ve all tried to keep their production down because they want prices up. That’s what they do.”
Our Methodology
To make our list of the stocks that Jim Cramer talked about, we listed down the stocks he mentioned during CNBC’s Squawk on the Street aired on February 3rd.
For these stocks, we also mentioned the number of hedge fund investors. Why are we interested in the stocks that hedge funds invest in? 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 275% since May 2014, beating its benchmark by 150 percentage points. (see more details here).
11. The Cigna Group (NYSE:CI)
Number of Hedge Fund Holders In Q3 2024: 66
The Cigna Group (NYSE:CI) is a health insurance and pharmacy benefits manager. Its shares are down by 8.9% over the past twelve months mostly driven by souring sentiment in Congress surrounding healthcare managers. This group of firms has struggled as investors have wondered whether a breakup of large firms is in play, and due to President Trump vowing to take on the healthcare middleman. Cramer commented on The Cigna Group (NYSE:CI)’s shares gaining simply because it was an American firm amidst turmoil that sent other stocks falling:
“Cigna up six bucks. Okay, go ahead, go ahead buy it up six. I wouldn’t buy it up six if it was a great day. I mean, it’s not a great day.”
10. T-Mobile US, Inc. (NASDAQ:TMUS)
Number of Hedge Fund Holders In Q3 2024: 66
T-Mobile US, Inc. (NASDAQ:TMUS) is one of the better-performing telecommunications stocks. Its shares are up by 46.9% over the past twelve months and have gained a strong 8.4% year-to-date. The recent performance of T-Mobile US, Inc. (NASDAQ:TMUS)’s shares is driven by a strong fourth-quarter report which saw the firm maintain its trend of robust subscriber additions. In Q4, the firm added 903,000 postpaid subscribers which built upon the 865,000 additions in Q3. Here is what Cramer said about T-Mobile US, Inc. (NASDAQ:TMUS):
“People want to just, they want to buy instantly. They can’t even, T-Mobile. T-Mobile’s great but do you have to like go pay up three? I mean, you know come on, it’s a bad day. Live with it.”