Stop Trading!: The Only Financials Worth Owning
With the Dow down 260 points on Inauguration Day, investors seem to think Barack Obama plans to launch an “onslaught against Wall Street,” Cramer said during Stop Trading!, though the new president has given no indication that was the case.
“Everything he’s said is surprising,” Cramer said of both Obama’s campaign for and transition to the White House. “Why wouldn’t we suspect surprise from Treasury?”
Cramer shrugged off talk that Obama hopes to strip the wealthy of their assets and pointed to the fresh approach number 44 has taken to governing since his Election Day victory. The appointment of Christina Romer, a proponent of tax cuts rather than spending as a way to fight recession, to chair of the Council of Economic Advisers is just one example.
“Can we at least think that they might be thinking more creatively than we think on Wall Street?” Cramer said of Obama and his administration.
The Mad Money host in no way thinks that the trouble in financials is over, but he did express confidence that Lawrence Summers, Obama’s director of the National Economic Council, could find a solution to the U.S.'s banking troubles.
Those that agree with Cramer might consider Chubb and Travelers , he said, because both companies have held up during this downturn and neither needs TARP money. These two stocks could work as a hedge against all the negative action in the financials.
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