Investment guru Jim Cramer tells savvy investors that the seemingly endless U.S.-China trade-war saga can work to their advantage if they muster up some courage to buy stocks at a discount before a formalized deal is announced.
“You should stop trying to bet on the trade talks and start looking for the stocks of high-quality companies that are worth buying regardless of how things go with China,” Cramer said on CNBC.
“People are always asking me, ‘How do you play the trade talks?’” the “Mad Money” host said. “I always say the same thing: stop playing and start investing,” he said.
Cramer told investors to focus on facts for particular companies and cautioned against being swayed by headlines on a daily basis.
“Once you stop betting on the outcome of the talks and start looking for opportunities created by the ridiculous swings in the market every time there’s some news about the trade war — whether or not the news is accurate — you’ll be in much better shape,” he said.
“Everything else is just rank speculation people, useless for investing and suspect even for trading,” Cramer said.
Meanwhile, JPMorgan Chase & Co.’s Jamie Dimon said he expects to see a phase-one trade deal between the world’s two largest economies, but warned that an additional wave of tariffs from the Trump administration would hit markets and U.S. growth.
The White House is expected to increase levies on $160 billion of imported Chinese consumer items including toys and smartphones on Sunday, which the JPMorgan CEO said would further weigh on gross domestic product, Bloomberg reported.
Dimon spoke at an event in Washington for the Business Roundtable, a Washington trade group that represents the CEOs of the largest U.S. companies.
“I think there will be a phase-one deal, personally,” Dimon told reporters. He also warned that if that did not happen and the tariffs went ahead Dec. 15, “it will be a negative in the marketplace and small-negative” for U.S. and global growth. “People expect this phase-one deal to take place and tariffs not to go up.”
Chinese officials expect the U.S. to delay the levies and some senior members of President Donald Trump’s administration have indicated that is likely to take place, although Trump has yet to make a decision.
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