On Friday, Jim Cramer, the host of Mad Money, expressed concern over President Donald Trump’s focus on the long-term benefits of tariffs as he argued that the short-term consequences are far more severe.
“The president is fixated on the long term when he talks about trillions of dollars that the tariffs will bring in. He says the tariffs will allow us to fund both tax cuts and a lower budget deficit. Putting aside whether that’s going to be true or not, I don’t think we have the full luxury right now of focusing on the potential long-term benefits because the short-term is a horror show.”
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Cramer highlighted that the tariffs are excessive and poorly executed and also lack the reciprocal nature needed for a fair trade policy. He noted that it has triggered unnecessary chaos in the markets. He further criticized the stock market’s current state and noted that it is far from functioning properly. He pointed to the struggles of private equity firms, whose stock values are plummeting.
Cramer mentioned that these companies, which hold a significant number of highly levered businesses, had been planning to bring them public under Trump’s administration. However, he said that due to the current market turmoil, there are growing concerns that these initial public offerings might be canceled altogether. He added:
“If we want to get out of this mess, we need some signs that the president understands the need for a functioning market.”
Cramer also stressed that while the U.S. may be experiencing low unemployment, it might not last if short-term issues are not addressed. He commented that the public does not elect their leaders to look only toward long-term outcomes but also to manage immediate challenges. Cramer urged Trump to adjust his approach and form better trade relationships with countries that are open to trade negotiations.
“The President needs to make a commitment… to help companies that want to avoid the tariffs. He needs to call world leaders and say that they can roll back some of the tariffs that he’s putting on them, but, they gotta play ball. Mr. President, don’t cause a crash. It will be your legacy and it can easily be avoided.”
Our Methodology
For this article, we compiled a list of 8 stocks that were discussed by Jim Cramer during the episode of Mad Money aired on April 4. We listed the stocks in ascending order of their hedge fund sentiment as of the fourth quarter of 2024, which was taken from Insider Monkey’s database of over 1,000 hedge funds.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
Jim Cramer Talked About These 8 Stocks
8. GlobalFoundries Inc. (NASDAQ:GFS)
Number of Hedge Fund Holders: 24
GlobalFoundries Inc. (NASDAQ:GFS) received a comment from Cramer during the episode, and here’s what Mad Money’s host had to say:
“Yeah, well the problem is… they make… they do not make the latest and greatest and that’s the problem. Taiwan Semi does and no one wants to touch that stock either. So don’t feel bad.”
GlobalFoundries Inc. (NASDAQ:GFS) offers a variety of semiconductor fabrication services and technologies. The company produces devices such as microprocessors, mobile application processors, and power management units. In August 2024, Cramer made a similar comment as he said:
“I don’t like the foundry business as much. It turns out that the only people who really know how to make them cheaply is Taiwan Semi. So if you want to own a foundry, Taiwan Semi is the one to do it.”
7. Old Republic International Corporation (NYSE:ORI)
Number of Hedge Fund Holders: 34
A caller asked if they should buy, sell, or hold Old Republic International Corporation (NYSE:ORI). In response, Cramer said, “ORI is a winner. It’s a terrific situation. Let me throw in Chubb. I like that too.”
Old Republic International (NYSE:ORI) offers insurance and related services. It provides various insurance products, including health, accident, commercial, and workers’ compensation and it also offers title insurance and services for real estate transactions. It is worth noting that Cramer was bullish on the company in 2021 as well when he stated:
“What can I say? Don’t wonder and start buying. It’s the kind of stock I really like. It’s got almost 4% yield. It’s in a good business. I don’t know, someone is going to take it over one day.”
Since then, Old Republic International (NYSE:ORI) stock has gone up more than 50%.
6. Archer Aviation Inc. (NYSE:ACHR)
Number of Hedge Fund Holders: 34
When a caller asked about Archer Aviation Inc. (NYSE:ACHR), Cramer replied:
“A little too speculative, a little too speculative. We’re not going to recommend stocks that are losing money in this kind of environment.”
Archer Aviation (NYSE:ACHR) is engaged in designing, developing, and operating electric vertical takeoff and landing aircraft. Over the past year, ACHR stock gained more than 48%. Cramer’s bearish sentiment toward the company was visible as he commented on March 13:
“Well, keep looking but do not press the button because in this kind of market, that company is an invitation to your funeral.”
5. LyondellBasell Industries N.V. (NYSE:LYB)
Number of Hedge Fund Holders: 46
A caller asked if Cramer would recommend accumulating some shares of LyondellBasell Industries N.V. (NYSE:LYB) and he replied:
“Here’s the problem, this, and I’m going to do a twofer, this and Dell, they need China to get stronger. They need worldwide growth and we’ve got China getting weaker. We’ve got worldwide weakness and that unfortunately makes it so we can’t take it. We can’t take some down.”
LyondellBasell (NYSE:LYB) is a chemical company that produces and markets a wide range of products, including olefins, polyolefins, polypropylene, advanced polymers, and refined petroleum products. The company also develops chemical technologies and provides solutions for various industries.
Alluvium Asset Management stated the following regarding LyondellBasell Industries N.V. (NYSE:LYB) in its Q4 2024 investor letter:
“LyondellBasell Industries N.V. (NYSE:LYB), the chemical and plastics manufacturer, reported disappointing, albeit not surprising results and was down 21.3% over the quarter. Market conditions remain poor, and this did cause us to make some minor changes to our valuation (which decreased by 5%). Still, at the current price of around 10 times earnings (which are at a cyclical low) it offers a 7% after tax dividend yield, and is well positioned to benefit from increasing demand as the supply side consolidates. We bought more to maintain a position of 4.7%.”
4. Dow Inc. (NYSE:DOW)
Number of Hedge Fund Holders: 48
Highlighting the stock’s 9% yield, a caller asked Cramer’s thoughts on Dow Inc. (NYSE:DOW) and he replied:
“9%, see I looked at that today. There were a bunch of guys who cut the price targets. I said to myself, wow, 9%… I have to take a pass because it means that there’s something awry.”
Dow Inc. (NYSE:DOW) provides a wide range of materials science solutions for various industries, including packaging, infrastructure, mobility, and consumer products. The company also offers specialty chemicals, and coatings, and engages in the property and casualty insurance business. Earlier in March, Cramer remarked:
“Well, okay, so Dow is trading with all the other chemicals as if they are just calls on China turning around. It’s a wrong thing, but that’s, I gotta tell you straight, that’s what it’s trading on and therefore that means it’s not a stock you should own right now and the yield might not protect you as people thought at 5 and 6%.”
3. Caterpillar Inc. (NYSE:CAT)
Number of Hedge Fund Holders: 62
A caller asked if it was a good time to start a position in Caterpillar Inc. (NYSE:CAT). Here’s what Cramer had to say:
“Okay, this is a great question because CAT has given up almost, it’s given up everything and Jim Umpleby is a terrific guy. Here’s what you have to do. You have to wait till he reports. You can’t jump the gun on this… Well, you won’t know exactly whether he’s buying back stock or he’s pulling in his horns until he reports. He’s too straight a guy not to listen to. We can’t pull the trigger until he says something.”
Caterpillar (NYSE:CAT) designs and manufactures construction and mining equipment, industrial engines, and diesel-electric locomotives. The company also provides financial products, parts distribution, logistics services, and various technology solutions. In January, Cramer commented:
“I think the stock’s had an amazing run, but CAT’s no longer a cyclical, it’s a secular grower because CEO, Jim Umpleby has maneuvered its business into more consistent end markets.”
2. Robinhood Markets, Inc. (NASDAQ:HOOD)
Number of Hedge Fund Holders: 79
A caller asked Cramer’s thoughts on Robinhood Markets, Inc. (NASDAQ:HOOD) during the episode, and in reply, he said:
“Okay, I like Robinhood very much, but the problem is that when it had this big spike where things looked like we’re going to have a president… that was a little more pro markets, I would own the stock. I would not buy it right here. I think the stock has another 15 to 20% downside before we really find exactly where it can be bottoming.”
Robinhood (NASDAQ:HOOD) provides a platform for financial services for users to invest in assets like stocks, ETFs, options, and cryptocurrencies. The platform offers features like fractional trading, margin investing, and educational resources. It also gives access to tools such as credit cards, spending accounts, and wallets. Artisan Partners stated the following regarding Robinhood Markets, Inc. (NASDAQ:HOOD) in its Q4 2024 investor letter:
“During the quarter, we initiated new GardenSM positions in US Foods, Pure Storage and Robinhood Markets, Inc. (NASDAQ:HOOD). Robinhood has emerged as the go-to-trading platform for millennials, boasting approximately 25 million accounts (versus Charles Schwab’s 34 million). The company’s user base skews younger, with deposits growing significantly faster than the broader industry due to several drivers, including the rise of self-directed trading, the generational wealth transfer to millennials and increasing market share. As Robinhood’s customer base matures and accumulates wealth, we believe the company is well positioned to expand its product offerings to meet evolving financial needs. Furthermore, management’s focus on profitable growth and a 90% fixed cost structure suggests meaningful margin expansion potential.”
1. Danaher Corporation (NYSE:DHR)
Number of Hedge Fund Holders: 101
A caller inquired about the impact of the impending tariffs on Danaher Corporation (NYSE:DHR) and here’s what Mad Money’s host had to say in response:
“Danaher’s a stock that I wish I did not own for my Charitable Trust. I keep hoping for the best, which would mean that Mr. Blair would be able to spend more time with his family because he is the CEO and right now I think that he’s not doing an appropriate job. I am concerned that… I’ll wake up… and find that the Chinese are kicking them out. So let’s just say that there’s a way to be able to manage your business. I saw this with Estee Lauder, same thing, great company, didn’t do it right. Time to step up, Danaher board. Let’s see, let’s see a pulse, okay?”
Danaher Corporation (NYSE:DHR) develops and produces a range of products and services. The company provides solutions in areas like therapeutic development, clinical diagnostics, and laboratory research.
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