In Tuesday's Stop Trading! segment, Cramer was voicing the concern in the market that President Obama could pose problems for American businesses if his administration continues along a "populist route."
If you can attack Wall Street, Cramer said, you can attack business in general. With this thesis in mind, Cramer wonders whether there will be more targets in Obama's sights, like the oil sector for example, who makes big profits, uses government lands and isn't exactly loved by the public. "You have to look at what could be a target next," he said, "because the White House is back in that mode where they simply think the stock market is unimportant."
Cramer went on to refine his position, stating that he thinks the US has a President who "is kind of turning on the stock market, in a populist way." Cramer believes that Obama is under the impression that the stock market is a vehicle that only rich individuals use, and he questions whether investors should put more of their money overseas as a result. In this vein, he changed his guidelines for investing, suggesting that people keep 25% of their portfolio in foreign stocks, instead of the 20% he has normally recommended. "The United States is becoming unfriendly to business," he said, "that's just a fact of life."
If the administration goes the populist route, Cramer expects companies like Exxon Mobil to face a tough governmental environment moving forward. Cramer says that the issue Obama faces is whether "business is bad, or certain banks are bad," and this question begins to highlight whether investors need to reevaluate their portfolios to see if their holdings may be in the government's crosshairs. Cramer thinks that consumer staples is a sector that will be priced at a premium, because they will be out of the President's anti-business purview.
A company that Cramer thinks will be out of danger is Apple. On the eve of it's biggest release since the iPhone, Cramer describes the situation as a "two-fold trend, a multi-year story." The situation is complex, but Cramer expects that there will be a "blast of selling" from the hedge funds after the product announcement. He suggests buying Apple on the dip that will be sparked by hedge fund selling, which he thinks is a cheap company that is benefitting from a strong quarter.
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Cramer's Charitable Trust owns Apple.
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