Trump-fueled market volatility proves to be a buying opportunity

President Donald Trump’s tariff threats shook the stock market once again this week, and CNBC’s Jim Cramer says that’s when investors need to act.

“Pretty much everything the president does has huge ramifications on the stock market, and I think he knows that,” Cramer said on “Mad Money” Wednesday night. But Cramer said there is now a significant difference from 2017, Trump’s first term in the Oval Office, to 2021.

“Embers [in his second term] It’s much more comfortable to push the market down rather than up, Cramer said. “Just be ready. You should be looking for a lot of good buying opportunities over the next three years.”

Investors learned last year that Wall Street had moved harshly in response to Trump’s policies (whether simply threatened or actually implemented). “From trade policy to tax policy to capital return policy to military policy, their impact on the stock market is more important than the direction of interest rates,” Cramer said.

That was evident on Wednesday, when stocks pulled back after Trump ruled out military action to seize Greenland and then said later in the session that he had reached a “framework” agreement on Greenland with NATO Secretary General Mark Rutte. All three major U.S. indexes (S&P 500, Nasdaq and Dow Jones Industrial Average) were up more than 1% on Wednesday.

That recovery halted the “sell America” ​​trade that dominated Tuesday’s session, when markets fell on concerns about Trump threatening a new round of tariffs on European countries. But along with Wednesday’s framework deal, Trump also canceled European tariffs that he had promised to impose next month.

Cramer said investors have seen this movie before and the ending will usually be the same.

“I remember him hitting rock bottom after the Independence Day debates by literally sharing that it was time to buy shares in Truth Social,” Cramer said, referring to Trump’s social media post on April 9, shortly after the opening bell on Wall Street. Hours later, Trump withdrew many of the higher-than-expected tariffs he had imposed a week earlier; This sparked a dramatic selloff in stocks and led to retaliatory tariffs from countries like China.

“It turned out to be an incredible acquisition opportunity,” Cramer said Wednesday. In fact, the market recovery consolidated in late April and May as progress on trade agreements eased uncertainty. Stocks had fully recouped their losses in early April by mid-May.

Cramer’s message to investors is to be prepared to buy quality stocks at a discount while expecting more volatility in the future.

“In this game of international and domestic chicken, he’s been giving you so many buying opportunities since he took over that all you have to do is wait for the hot ones and then buy some,” Cramer said. he said.