With China and the US tentatively agreeing on a ceasefire, CNBC's Jim Cramer wanted to offer investors the best strategies to take advantage of the developments.
First, China will probably spend more on agricultural products in the US, raising grain prices, giving farmers more money to spend on supplies, and thus shipping the land shares of agricultural machinery manufacturers like Deere & Co. higher he.
China could give up massive orders from Caterpillar, Cummins and Boeing, causing "a huge ripple effect" in the rundown industry sector, Cramer said.
"Do not think like a portfolio manager, think like a Chinese bureaucrat, ordering an aircraft to a US company compared to Airbus would bring great benefits to the president," he said. "Orders for engines and tractors that are not going to the Japanese but going to the United States instead are big, visible achievements, and you can see the president doing a Trump winner tour as soon as the orders come in." It could also pave the way for companies such as Mastercard, Visa and American Express, which have been self – employed in the Chinese market for many years. Englisch: www.cosmetic-business.com/en/showar…p?art_id=544 trying to enter China seriously.
"You want unrestricted free access I was China, I would give it to them, at least one or two of them, another big, visible gain that does not cost them much," Cramer said.
The host of "Mad Money" noted that retailers will also benefit from the ceasefire. This not only gives them 90 days more time to relocate their production from China, but the repealed tariff increase – which was supposed to increase from 10 to 25 percent by the end of the year – means that retailers' estimates for 2019 may be too low. He explained.
To this end, the dollar businesses are "perhaps the most exciting area" of the stock market, Cramer said. Without the tariff increase, the estimates for Dollar Tree, Dollar General and Five Below are likely to be too low.
"Well, [Dollar General] announces [Tuesday] tomorrow, so you can not get into this one, but Five Below is going Thursday's," he said. "I would buy some before the quarter and after that Collectively, this behavioral change in China could be great for US equities, provided that investors do not get any unpleasant surprises like too-hot jobs. On Friday, the host said "Mad Money."
"I would say, the president has given China 90 days to come to the table, with major changes in the way it does business, "Cramer said, and successes will be" case by case ", with the best cases just mentioned. "