Jim Cramer on 2 trends moving the market: Trade and dollar weakness
On Wednesday, Jim Cramer from CNBC discussed a few wide ideas, which he thought he thought he was continuing the market action, saying it was important to understand trends and effective current events.
“Why do you know why I first entered this ugly business? Stories, stories,” he said. “It is tremendous, interesting stories, fairy tales that can explain what will happen – and in fact you can earn some money from them. This is what happens at the moment, and the stories guide most of this action.”
According to Cramer, Wall Street “at a bending point”. He said that investors can focus on “Minutiae” like business losses in health services. 10 -year treasury Or comment from different members of the Federal Reserve. Or, “We can look at all this, but we can focus on some stories that can save us some money.” He said.
Cramer first pointed out the developments in global trade about Vietnam. President Donald explained how Trump slapped Vietnam with a heavy tariff on the so -called “Liberation Day” in April. He said that the movement came to many large companies running from China to carrying production to appease Trump to Vietnam as a coup. Since then, Cramer has continued, many clothing and furniture companies, when the supply chain was upset when the stocks received a stroke.
However, Trump announced on Wednesday that the United States made a trade agreement that set up a lower tariff than the initially threatened the goods with Vietnam. Cramer jumped a few shares in the news, Cramer said Nike And Williams-Sonoma. He called it too Openness– Levi Strauss And Konoor brands – as the potential winners of Lee, Wrangler and Hellly Hansen.
Another important trend Cramer is the weakness of the dollar reaching the lowest level of four years. Cramer said that this weakness thinks that consumer packaged goods are positive for their companies. Procter & GambleBecause it makes its exports more competitive.
“Now, I don’t like the Procter & Gamble stock here, but it is quite clear that they can overcome the numbers thanks to the weaker dollar.” He said.
