President Trump's tariff threats this week once again shook the stock market. CNBC's Jim Cramer said that Trump's second term is more likely to lead to a market downturn and reminded investors that there should be many good buying opportunities over the next three years, so be prepared to buy quality stocks at a discount.
Trump's second term is more inclined to lead to market declines.
Cramer said on "Crazy Money" Wednesday night, "Almost everything the president does has a huge impact on the stock market, and I think he's well aware of that." But Cramer pointed out that there is a key difference between the current situation and Trump's first term as president.
Trump (after re-election) is more inclined to let the market fall than rise. Be prepared. You should have many good buying opportunities over the next three years.
The power of the Liberation Army's investment advisory firm is still fresh in our minds.
Cramer mentions April's "Tariff Liberation Day," when Trump introduced many tariff measures that far exceeded expectations, triggering a stock market crash and provoking retaliatory tariffs from countries including China.
A week later, Trump posted on Truth Social that the stock market had bottomed out and it was time to buy stocks. Hours later, he announced the withdrawal of the tariffs.
As it turned out, it was an excellent buying opportunity. With progress on the trade agreement and reduced uncertainty, the market rebound was consolidated in late April and May. By mid-May, the stock market had fully recovered the losses from early April.
Investors learned last year that Wall Street would react strongly to Trump's policies, whether they were merely threats or actually implemented. From trade policy, tax policy, and capital return policy to military policy, these policies, apart from interest rate trends, have had a greater impact on the stock market than any other factor.
Be prepared to buy quality stocks at a discount.
On Wednesday, Trump ruled out the possibility of annexing Greenland militarily, announced the cancellation of new tariffs on Europe, and stated that a framework agreement on Greenland had been reached. This news boosted U.S. stocks.
( Trump claims Greenland agreement framework reached, Bitcoin returns to 89K )
Just the day before, the market had fallen sharply due to concerns that Trump would threaten to impose a new round of tariffs on European countries. Wednesday's rebound ended the "sell-off America" sentiment that dominated Tuesday's trading. Cramer said that this pattern often ends the same way.
Cramer's advice to investors is that while greater market volatility is expected in the future, they should be prepared to buy quality stocks at a discount.
Since he took over, he has provided you with many purchasing opportunities in both international and domestic markets. You just need to wait for the right time to buy!
This article, "Trump Trading Resumes! Jim Cramer: Seize Every Dip to Buy," first appeared on ABMedia .
