Wall Street seems to like AeroVironment as play on President Obama’s defense budget, but Cramer’s not so sure that’s a good idea anymore. The Mad Money host is worried the same shareholder-unfriendly approach the White House took toward Medicare, which hurt health-care stocks, could hurt the Pentagon as well.
“We’ve got to get over the idea that you can make money on the long side with Obama,” Cramer said during Monday’s Stop Trading!. “That has proven to be very difficult.”
Cramer recommended instead that investors preserve cash and assume a protective stance against any future White House moves.