Cramer Rips Obama's 'Lurch Toward Populism'
It was initially thought the election of President Barack Obama was just going to hit your pocketbook in the form of higher taxes. But if the past several days are any indication, the president has found another way to hit it – by attacking your stock portfolio.
On CNBC’s Jan. 25 “Mad Money,” host Jim Cramer advised his views to be aware of this and to strategically position their stock portfolio with an eye on Obama and Washington’s expanded role in the private economy.
“In the last week the world of investing has been turned upside down by
“And tonight I’m going to give you that prism, a whole new methodology for putting prices on stocks in a world where the President has shown he can and will smash any given sector as part of his lurch toward populism,” Cramer said. “Suddenly stockholders seem to be Obama’s public enemy number one, or PENO as I call it.”
According to Cramer, Obama’s anti-bonus rhetoric was intended to be directed at so-called Wall Street fat cats. However, the law of unintended consequences has shown that other investors that are using the stock market to save for college and retirement have been hit. The Dow Jones Industrial Average (DJIA) sank 552 points over the course of three days following Obama’s strong rhetoric about the banks and bonuses.
“As we saw from an Obama-induced sell-off last week that caused stocks to correct more than any time in recent memory for certain,” Cramer said. “Doesn't matter that most people put their kids through college with stock profits, retire with the aid of stocks. These seem to be of no importance to Obama, who seems to think that [CEO] Lloyd Blankfein from Goldman Sachs is the only person with big stock holdings in the country and everyone else is immune to huge stock declines.”
Cramer explained that if Scott Brown had not pulled the upset against Martha Coakley in the Jan. 19
“Maybe if Martha Coakley, the Democrat, had won in
“Coakley’s loss killed more than the Democratic supermajority in the Senate,” Cramer said. “She killed the banks. And to think that Wall Street once loved Obama, now we know indeed, in true Lady Gaga fashion, he doesn't want our love. He doesn’t want to be friends. He just wants revenge.”
Cramer warned shareholders to be on the look out during the President’s Jan. 27 State of the Union address.
“So who’s is next in the battle of capital and the White House Bear-in-Chief?” Cramer asked. “Isn't that the real question? We know business is the enemy now. It's all become clear to us. We need to be ready for anything, including some grenades that might just come to shareholders in the State of the Union address on Wednesday. Fire in the hole!”