Cramer said he wasn’t trying to predict the election outcome, but he stressed that Saturday’s assassination attempt has many believing Trump is likely to defeat President Joe Biden in the fall. Buyers on Monday appeared to agree with that assessment, with many betting on stocks that are expected to perform well under a Republican administration.
Trump is likely to be more lenient on mergers and acquisitions than Biden, according to Cramer. Cramer said big investment banks could be leveraged to make mergers work, so investors should look to firms like JPMorgan, Goldman Sachs, Morgan Stanley and Bank of America, all of which saw gains on Monday. He also suggested that the Trump administration could allow Kroger to acquire Albertsons and Tapestry to acquire Capri, deals that the Biden administration has tried to block.
According to Cramer, investors may want to avoid stocks that are tied to saving the environment. During the first Trump administration, the government rolled back more than 100 environmental policies, according to New York times.
If government support is removed, Cramer said companies like Enphase, SolarEdge, Sunrun and Sunnova — all of which were down by Monday’s close — could see earnings decline.
“Eight years ago, in a moment of political fever, I put a button on my soundboard that said ‘Trump Stock, Trump Stock,’” he said. “After the events of this weekend, it seems I have to put it back.”
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Disclaimer: CNBC Investing Club Charitable Trust owns shares of Morgan Stanley.
