We recently published a list of Jim Cramer Says Tariff Pain Isn’t Over Yet And Reviews These 9 Stocks. In this article, we are going to take a look at where Broadcom Inc. (NASDAQ:AVGO) stands against other stocks that Jim Cramer discusses.
In his latest appearance on CNBC’s Squawk on the Street, Jim Cramer dissected the market’s recent rally and reminded his viewers to not mistake short-term optimism for resolution. As major indices bounced earlier in the day, Cramer warned that some deeper structural uncertainties remain unresolved, saying:
“Well, I think that those who are running companies are saying, what the heck is going on here? We’re trying to run our companies. Suddenly, we find that a country that we’ve dealt with for a long time, we have to just say, wait a second, we’re going to put a surcharge on. We’re going to pass through. So the issue is, who can pass through and who isn’t? Who has pricing power? It’s often like that. Who has scale? Who has pricing power? Who can tell the Chinese, listen, we’re going to go away, of which then you have out-of-stock parts. And who says, OK, we’ll split the tariff.
READ ALSO: Jim Cramer Got These 10 Stocks All Wrong and Jim Cramer Warns of a 36% Market Drop & Reviews These 9 Key Stocks.
Cramer acknowledged the bullish hopes circulating among traders and policymakers that quick deals with allies like Japan, Mexico, and Canada could offset the trade war’s damage. But he was clear that these deals, while politically useful, won’t erase the inflationary burden already being felt by companies and consumers:
“[Talking about expectations about the White House reaching deals with other countries] There’s going to be a deal. They’re very excited about Japan and the administration. Exactly. They’re very excited. By the way, they like Korea. […] Yeah, I think that Mexico, they are very much expecting it’s going to be a better deal. Canada, and they’re going to be able to trumpet a few days from now. Look what we’ve done by being really tough. And you know what? The Chinese are going to fold. They believe that the Chinese will fold.”
