Tags: jim cramer | donald trump | stock market | correction

CNBC's Jim Cramer: I Do Not Fear a Trump-Inspired Market Correction

 (AP/Mark Lennihan)

By    |   Tuesday, 07 February 2017 09:03 AM

CNBC’s Jim Cramer cautions savvy investors to keep calm despite all the controversial and volatile circumstances in the early days of President Donald Trump’s administration.

He bluntly states that he is not fearing a sudden market plunge, so why should you?

Cramer said most investors probably fear Trump's agenda to deregulate banks and are fixated with fear that everything has to go through Congress. "That is the conventional wisdom, and it is just plain wrong," the "Mad Money" host said.

"The president has freedom when it comes to how hard he wants to enforce rules, and Cramer interprets Trump's actions so far as signaling that he wants regulators to have a lighter touch. In the past, regulators have used the Dodd-Frank Act to come down hard on banks," CNBC.com explained.

However, that won't be the case in the future, the  CNBC host predicted.

While many investors think a Trump-related correction in the stock market is coming, Cramer said he doesn't fear such a plunge, or "correction," commonly referred to as a 10 percent drop from a recent high.

Trump's blizzard of executive orders will slow the economic agenda of corporate tax reform and repatriation of foreign assets, but Cramer thinks a big correction is less likely than other economic gurus have suggested.

As for individual investing sectors, Cramer cautions to keep a sharp eye on retail stocks amid plunging department store sales. "The implications here are horrendous for a host of different companies," Cramer said. Hasbro seemed to be the only company that could fight the trend, as shares skyrocketed 14 percent on Monday.

Meanwhile, other respected economic voices have expressed worry about the early days of Trump's presidency.

For example, Goldman Sachs Group Inc. has warned that a tidal wave of U.S. political and economic risks are building against Trump's agenda, little more than two weeks into his administration, Bloomberg reported.

"Following the election, the positive shift in sentiment among investors, business, and consumers suggested that the probability of tax cuts and easier regulation was seen to be higher than the probability of meaningful restrictions to trade and immigration," Goldman Sachs economists led by Alec Phillips wrote in note published late last week.

"One month into the year, the balance of risks is somewhat less positive in our view." 

And while many of his campaign vows have yet to be fulfilled into presidential accomplishments, Trump will be a demanding leader who applies the best of his negotiating skills to push for U.S. growth, bestselling author David Horowitz told TheStreet.com.

Trump won’t be an ideological purist like Republicans who support free trade but don't fight for fair trade, Horowitz said.

“If you just say, ‘well we're for free trade and we're not going to look at the deals that we make’ -- that's not a good idea,” he said. “We've had an anti-business president now for eight years who doesn't take a hard-nosed attitude towards these deals. Trump is going to get better deals for us, which is still free trade.”

Horowitz's new book, "The Big Agenda: President Trump's Plan to Save America," reveals Trump's "first 100 days strategy" to roll back Obama's legislative and executive record.

Horowitz's new book is the first book about the Trump presidency and has soared to the top of the Amazon bestseller charts, becoming the No.1-selling book on the web. Trump will also lead the way in making infrastructure spending to boost the U.S. economy, Horowitz said.

“If the economy grows as it will under Trump, there's going to be a lot more money to spend,” he said.

"Big Agenda: President Trump's Plan to Save America" is available at bookstores everywhere – or get your copy on Amazon – Click Here Now

(Newsmax wire services contributed to this report).

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CNBC's Jim Cramer cautions savvy investors to keep calm despite all the controversial and volatile circumstances in the early days of President Donald Trump's administration.
jim cramer, donald trump, stock market, correction
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2017-03-07
Tuesday, 07 February 2017 09:03 AM
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