Cramer: Trade uncertainty gives investors chance to buy stocks at discount

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Predicting President Trump's next move in the U.S.-China trade war is a difficult task, CNBC's Jim Cramer said. But investors can use that uncertainty to their advantage, the 'Mad Money' host says.

But that does not mean investors should include in their strategy predictions about what President Donald Trump's next move in the long-running trade dispute will be, Cramer said."Even his closest advisors might not know what he'll do," Cramer said. "He might not even know himself until the moment he tweets or announces his decision at an impromptu press conference."

"You should stop trying to bet on the trade talks and start looking for the stocks of high-quality companies that are worth buying regardless of how things go with China," Cramer said.Cramer said the company, shares of which are owned by his charitable trust, has come down recently to attractive levels. Part of that is due to an execution glitch and weaker comparable stores sales last quarter, Cramer noted.

This would seem to make it an opportune time to sell Home Depot's stock, Cramer said — but not so fast. If that impact isn't too great and the stock gets hit Monday "after the trade talks potentially fall apart," Cramer said, "you'll be armed and ready" to buy into that undue weakness.

 

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Good afternoon PT. You keep tweeting all the analysts were wrong by being negative. 80 percent are positive although the S& P is basically unchanged from 2 years ago. You like to measure for the calendar year which is hardly significant

While Jim is right that it is impossible to predict the outcome of the trade talks, it is key for investors to move beyond the value factor paradigm and begin thinking probalistically about major events that would drive market values

Yeah and a total collapse gives buyers an even bigger discount...

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Stocks close broadly lower on Wall Street; trade in focusMARKETS: U.S. stock indexes edged lower in afternoon trading Monday, placing the market on track to give back some of its gains from last week. Envy. Of. The. World. Cheers to the market crashing so we can say i told you so to Trump. Here here !!!!
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