Dont get too excited! Cramer says the markets new highs have nothing to do with Trump

[Yo_Mama_Been_Loggin]

As the criticisms of President Donald Trump's approach continue to pile up, Jim Cramer reminded investors that the recent strength in the stock market is not because of Trump.

Instead, it is based on earnings and the belief that companies can do even better.

"There is a lot of raw emotion when it comes to Trump and when people get emotional, even really smart professional money managers, they stop being able to analyze the situation objectively," the "Mad Money" host said.

Cramer referred to the New York Times column from Andrew Ross Sorkin that highlighted respected hedge fund manager Seth Klarman entitled "A Quiet Investing Giant's View on Trump." Klarman wrote a private letter to his investors two weeks ago, stating that the euphoria since the election has created "perilously high valuations."

http://www.msn.com/en-us/money/markets/don%e2%80%99t-get-too-excited-cramer-says-the-market%e2%80%99s-new-highs-have-nothing-to-do-with-trump/ar-AAmIrfc?li=AAaehx7&ocid=edgsp

[still_one]

1. Not entirely. A big reason why the financials are booming is the belief that rump will get rid of

Dodd/Frank

Telecoms because they believe net neutrality out the door, and bye bye deregulations

actually that is a large part of what is going on, and if this comes to fruition it will make the financial implosion from the bush deregulation, look like child's play

[Yo_Mama_Been_Loggin]

5. I have to disagree per telecom stock

I own a fair amount of Verizon which has been adamantly against net neutrality. It's currently priced at 48.04 per share. Its peak over the last year was 56.95 in July.

[still_one]

8. You have to look at the whole sector. VZ has had lackluster earnings, that is why its price has

been stagnant. There is also a lot of thought that the AT&T/Time Warner deal will now happen, along with a lot of consolidation in the industry. Comcast/Verizon, Tmobile/Sprint/Charter communications, all kinds of possibilities

Net neutrality is only one aspect to extract revenue and screw the consumer, there is a lot of hope that trump is going to also bring deregulation in full force, and that is not just in the telecom sector

[Best_man23]

2. I agree with the Hedge Fund Manager

I think the markets will drop at least 10-20% either when tRump faces and whiffs his first real crisis, or soon after he starts a trade war with China or Mexico.

Last year, I reduced all my positions across the board. Still holding a few stocks, mostly secular stocks like consumer goods (Kraft Heinz). Gold has risen better than stocks since the first of the year. I did buy some shares of a gold ETF toward the end of last year. I may buy some more of the gold ETF if it looks like tRump is going to start that trade war (which I think he will do at some point this spring or summer).

Need to keep in mind were almost 8 years into this up market, so we are WELL OVERDUE for a significant correction.

[calguy]

6. I'm with you

I just finished withdrawing all my 401k money and put it in a safer income fund. My daily trading is mostly short selling. I rarely keep a stock overnight. Doing well, staying mostly cash overnight and "Loaded for Bear".

[Jim Beard]

3. Also specualtion about tax cuts.

[Initech]

4. Who cares what Jim Cramer says?

[still_one]

9. on that point you right.

[unblock]

7. more accurately, i don't think it has much to do with donnie as opposed to republican in general

the market is factoring in expectations that republicans will do the kinds of things republicans have been drooling about doing for years, should they ever control congress and the white house.

tax cuts, deregulation, deficit growth (yes growth), etc.; the usual greedy and irresponsible crap.

much of this gooses the market in the short run, albeit at the expense of the long run. so i'm expecting a bit more of this bull run, maybe it peaks in the 3rd quarter or so.

in this analysis, donnie is just a random republican bill-signer.


the only domestic policy bit that's particularly donnie is his protectionism. it's not clear he'll get congress to agree, because *a lot* of the business community is scared sh*tless at the prospect of a trade war. i suspect he'll only get a very limited bit of this, just enough to claim victory, but not enough to cause a major problem outside maybe a few small industries and a few trading partners. maybe just mexico.

the wild card is foreign policy, but most likely, donnie's likely to get us sucked into yet another stupid war. which would likely be a disaster in many ways, but again, in the short term, good for the economy (particularly "defense&quot .

[AngryAmish]

10. Never listen to Jim Cramer

Never listen to the financial press.

Random Walk Down Wall Street.

Financial reporting is more ridiculous than news reporting. They literally make up their news every day.