If President-elect Donald Trump's reaction after meeting with United Technologies CEO Greg Hayes at Carrier on Thursday is any indication of how he will be as president, Jim Cramer thinks he will be pretty tough on companies that move jobs offshore.
"He says there will be consequences. That doesn't sound like your typical pro-business Republican president," the "Mad Money" host said.
Nevertheless, Cramer thinks that investors were too negative before the election, and got ahead of themselves after it. The market was exactly what he didn't want to see on Thursday.
"We basically ran out of new money to fund a healthy broad-based advance and instead went narrow into a couple of so-so leadership groups, which is not a positive long-term scenario," Cramer said.
It's bad news when money rotates out of technology, health care and interest rate-sensitive stocks. Those groups are supposed to hang in there, he said, not get killed like they did on Thursday.
The market has had a huge run since the election, and Cramer knew it was bound for some profit-taking. But now it's gone into a "rob Peter to pay Paul" situation. The industrials and bank stocks have moved too quickly in one direction for his taste.
"But let's not get too cynical or even too skeptical. Donald Trump will be a pro-growth president. Combine that with some green shoots in the economy — of which there are many — should ultimately produce better returns for stocks, all stocks," Cramer said.
The problem is that without new money coming into the market, it won't happen all at once. That means Cramer expects sell-offs ahead and buying opportunities.
"My take? I want to go against the grain. I want to buy some of the stuff that has been thrown away … and take some profits in the stuff that is too strong," Cramer said.
Cramer recommended picking a stock that is suddenly hated in the market, and selling something that is too loved, and then get ready for the next rotation.
Programming note: United Technologies CEO Greg Hayes will appear on "Mad Money" on Monday, Dec. 5 at 6 p EST.