Following Thursday night’s heated debate between President Joe Biden and former President Donald Trump, CNBC’s Jim Cramer explained how markets’ mood could change if Trump returns to the White House.
“If people think Trump is a likely candidate for president, the overall mood in the stock market will improve because he can’t stand to see the major stock indexes fall, since they use them as a barometer for how he’s doing in the job,” Cramer said. “That may seem crazy, but it’s true. At the very least, whether you hate him or love him, he’s good for your portfolio.”
Cramer said the Trump administration has rarely tried to block mergers, so companies like Kroger, which is trying to buy Albertsons, and Tapestry, which wants to buy Capri, may be successful. Capital One, which wants to buy Discover, could also be successful.
Cramer noted that Trump has been generally supportive of gas and oil, pointing to companies like New Fortress Energy and Cheniere, and predicted that the Republican would impose tougher trade restrictions, particularly on China, if elected, which he said might not bode well for companies like Nike or Starbucks.
Cramer said that from as far back as he’s known Trump, the Republican candidate has had a strong interest in the markets.
“He loved to joke about the stock market and he was on the show a lot because even though he was in real estate, he loved stocks,” Cramer said.
Former President Trump’s campaign did not immediately respond to a request for comment.
