Listen: Congress, China, Jim Cramer discussed on MAD MONEY W/ JIM CRAMER
"Three CNBC or tweet me at Jim Cramer. How do we gain out the potential outcomes of this election today, we saw a lot of bets on possible scenarios bets being made? I think frankly with all that not all that much information. Well, let me try to interpret what the buyers and sellers were doing to understand why the Dow gained one hundred seventy three point say, yes. And be Vance point six three percent. And then ask that kind points. It's four percent. And there for maybe get some insight into what they might do. I most of today's buyers embraced the concept that we're going to have gridlock. Most likely gridlock caused by the Democrats taking control of the house of representatives. Why don't veterans look we'd walk so much because historically when Washington can't get anything done. That's been very good for stocks. But as good look really good right now, we got a game this out. Okay. On the one hand. We're not getting any more. Tax cuts with the do nothing. Congress. So once we anniversary of the presence us tax reform packets. That's no longer going to bolster our growth anymore at the same time. There won't be enough votes in congress to block President Trump's trae war against China. That's gonna keep puttering along and Federal Reserve looks set to keep raising interest rates one can December and then three more next year. If you own stocks, this quit lock scenario results in dramatically slower economy. That's the sound of a slower economy. Not great news for the market as a whole, but it's driven for the highest growth stocks that can keep putting up terrific numbers. Even during a Slota think Amazon alphabet, the cloud place, the cyber security stocks and many of the non-semiconductor names like broadcom and Qualcomm, which are tied to the roll out of five G wireless technology, not the border me. And I could argue the five G wireless technologies going to go on no matter who's in congress. What else then because if historically liked biotech while disliking big forma? Here's an idea you could easily buy biotech ETF year. These are all these talks are always there just really far down. So I like the X P I owe it will do the job. Although again, because we have gridlock. I'm not so sure there's much democratic house to do for the biotechs. So that's kind of more ethereal. What does it work when we have block? I don't think it will be great for the consumer what's being alleged tax cut. There's nothing else. Coming but interest rates and tariffs are still going to go up. We shouldn't tremendous rally in retail going on. Endlessly. I seemed to Peter out today could come to a truly screeching halt moral. I'd be very careful here. I bet many hedge funds would like to go wall Amazon which has been down down down and go short all the retailers which have been up above except perhaps discounters like TJ extra potent stores Dollar General how the Republicans keep both houses of congress. Well, I got one that is what I need you to do this. I need you to go by the defense stocks. Northop grummin lucky Morton and Raytheon all everyone had outstanding quarters among the best. We seen this year. And yet what happened? Stock so cloud why because fears that congress would end up cutting the defense budget. If the Democrats can't control of either house while both parties love showing up money for military hardware, the Republicans love that even more. So if they can hold both houses of congress, I expect a roaring bull market defense stocks, or at least a cessation of the nasty bear market. That's been going on. Now bite. Also, clearly by the soccer, Boeing, even with the trade war against China because I believe the Chinese Nivo and move them Bowie needs China. Sure, the company sells a quarter of its planes to the People's Republic. But the weightless for commercial aircraft is many many years long and to China wants to switch to Airbus. They'll have to get to the back of the line. And I think demand stay strong because of the growing middle class in developing countries, like China, speaking of the tray world, I know that there are plenty of traders who believe that if Democrats can take both."