We recently published a list of Jim Cramer Reveals Stocks Benefiting From Tariff Selloff & Discusses These 8 Stocks. In this article, we are going to take a look at where Microsoft Corporation (NASDAQ:MSFT) stands against other stocks that Jim Cramer discusses.
In his appearance on CNBC’s Squawk on the Street on Thursday, Jim Cramer commented on small-cap stocks, Mexican stocks, homebuilder stocks, and sectors that the money moving out of tariff-exposed stocks might flow into. Commenting on the fact that Mexican stocks thrived while US stocks sank, Cramer linked the country’s decision to work with President Trump as being behind the strong performance. “I know well look I, they turned out to be not bad,” he said. “You paid the piper and you bring the stuff in. The piper’s not as bad as you thought. And it’s really good,” Cramer added.
Shifting to the small-cap stocks, Cramer explained why the Russel index had entered a bear market. The index lost 10.7% on Thursday and Friday, and according to Cramer, the downward movement is due to multiples shrinking. He shared:
“This is a multiple shrinking. We’re going to go to 16 times 26′ numbers. That’s how you have to figure it out. You just take look at those. And that’s where we’re gonna go.”
The CNBC host didn’t hold back when it came to either clarity or calling the tariffs ‘reciprocal.’ He reiterated that the markets were reducing valuation multiples as tariffs can impact corporate earnings. According to him:
“. . we won’t get clarity. Like everyone was thinking about that so called clearing event. That was nothing. Reciprocal as we said we threw out immediately. I just think that you’re downsized. And you ought to keep some capital so that when we get there, because we can get there. I’m not saying the end of the world, but I am saying, yeah, we’re going back to a very low multiple.”
He added: “I came on the Today Show, in 2007 and I said if you needed money anytime in the next five years, you should sell. And it was a great call.”
As for homebuilder stocks, Cramer pointed out that “rates are coming down. Mortgage rates are coming down pretty severely,” and wondered if this means that it’s time to buy. “I mean, do you buy the homebuilders,” he wondered.
Elaborating further on capital flows during the selloff, he outlined:
“I’m just saying that money’s going to gravitate from places that had been like [Michael Dell’s company] . . .and it might go to [homebuilding stocks]. Because rates are coming down. And they’re coming down really hard, really fast. We should recognize that. The rates are really braking[sic].”
