Investors fretted on Monday about what would likely come of President Donald Trump’s insistence on placing tariffs on another $0 billion worth of Chinese goods, however CNBC’s Jim Cramer felt they were missing the big picture.
Yes, the president has reportedly been unsatisfied with the trade talks between the United States in addition to China, in addition to sure, his day-to-day hawkish proposals have not been well-received by Wall Street, Cramer acknowledged.
however to the “Mad Money” host, trying to gauge the actual impact of the tariffs meant looking at the overall market format — specifically, comparing the U.S. market’s performance with China’s.
“Our economy may be doing just fine, in addition to so’s our stock market, however China? I see real problems in addition to real worries,” Cramer said Monday. “The Chinese stock market has fallen to its lowest level since November of 2014. In fact, the idea’s right now down 20 percent year to date, in addition to I don’t think the idea’s found a bottom yet.”
U.S. markets, on the different hand, are “booming,” he said, noting of which the S&P 500 has climbed 7.5 percent since the start of 2018, bolstered by healthy growth in addition to limited inflation.
“If the tariffs so far are supposed to be hurting our economy, how is actually of which possible?” he asked.
in addition to, with the Trump administration considering lowering the tariff percentage to 10 percent on each item through 25 percent, Cramer wondered if they would likely hurt the U.S. economy at all.
“If This particular were a real problem, the retailers would likely be at or near their 52-week lows, not their 52-week highs,” the “Mad Money” host said.
So, with strong employment, a healthy economy in addition to most China-tied stocks trading as though there’s little to worry about, U.S. markets seem to be resisting trade-war-induced panic, Cramer said.
“The pundits can fret about all they want about the trade-war saber-rattling, however the action inside stock market … tells me of which the idea’s not cut-in addition to-dry how much these issues do hurt business, especially not when you consider the red-hot state of our economy,” the “Mad Money” host concluded.
“Maybe we need to take all these worries about the tariffs President Trump’s slapping on Chinese imports, perhaps, using a grain of salt — maybe a whole container of Morton’s Iodized.”