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Cramer’s roadmap to finding stocks that will thrive in a new political world

Now that Donald Trump has officially been sworn in as president, Jim Cramer will be using a new metric to evaluate companies.

It all comes down to whether a stock is or isn't a Trump stock. Cramer expects Trump's agenda of deregulation, lower corporate taxes and repatriation of foreign assets to have a significant impact on the economy and stock market.

On the flipside, when Trump has a problem with a company, he's not afraid to Tweet what is on his mind—something that will put certain industries under fire.

"You will feel a whole lot more comfortable owning the Trump stocks than the non-Trump variety," the "Mad Money" host said.





President Donald Trump waves as he arrives in front of the White House for the presidential inaugural parade on January 20, 2017 in Washington, DC.
Nicholas Kamm | AFP | Getty Images
President Donald Trump waves as he arrives in front of the White House for the presidential inaugural parade on January 20, 2017 in Washington, DC.
"If the oil the gas industry had a wish list for what their ideal government would look like, you are looking at it." -Jim Cramer

The stocks that will benefit the most from Trump's legislative agenda are those that will benefit enormously from deregulation, such as banks and energy stocks.

The Obama administration was focused on fighting climate change, which was good for the environment but bad for the fossil fuel business. Trump's position is the polar opposite.

More importantly, Cramer said the former real estate mogul will have the most pro-petroleum cabinet in history.

"If the oil the gas industry had a wish list for what their ideal government would look like, you are looking at it," Cramer said.

Cramer's top picks were the pipeline plays, since they can make money even if the price of crude keeps falling, like Magellan Midstream and oil service company Schlumberger.

Banks will also benefit from deregulation. Cramer also believes that the President's agenda will jump start the economy and the Federal Reserve will raise interest rates, with banks being the chief beneficiary. Cramer's top picks were Bank of America, JPMorgan, Wells Fargo and Goldman Sachs.

Anything that is directly connected to stronger employment will do well, too, given that Trump has given job creation his top priority. That means payroll processors like Paychex and ADP will do well and Cintas, because more hiring means more uniforms.

Companies with large amounts of cash overseas are potential Trump stocks, like Apple. Infrastructure and defense contractors were on Cramer's list as well.

As for stocks that Cramer thinks will struggle under Trump, the pharmaceutical industry could be under Trump's tweeting microscope. He has said repeatedly that he wants to roll back many of the recent drug price increases. A possible repeal of Obamacare without a replacement could hurt healthcare and drug stocks.

Investors should also worry about any American company that makes things overseas and then exports them back to the U.S.

"Put it all together, though, and there is a lot more Trump stocks than there are non-Trump stocks," Cramer said.


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