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Morning Bell With Jim Cramer: Looming Capital Gains Tax Hike

Jim Cramer shares stock-market news including the looming capital gains tax hike and the semiconductor shortage worldwide.

Dow futures are positive Monday morning and the Nasdaq is fighting to come back to the positive side as a busy week of earnings awaits investors this upcoming week.

In the last episode of Mad Money, Jim Cramer explained why not all bad reports deserve to be sold. In the heart of earnings season, the market often makes mistakes.

TheStreet's Katherine Ross and Cramer are talking about the looming capital gains tax hike and the semiconductor shortage worldwide that's disrupting auto-production and global supply chains.

Pay Your Taxes

Capital gains taxes were all the talk on Wall Street Thursday, but Cramer told his Mad Money viewers they need to stay focused on the fundamentals and stop fearing the taxman. 

The Biden administration is reportedly considering almost doubling the tax on capital gains to 39.6% for those earning more than $1 million a year.

Cramer said I have seen too many people give away big gains because they didn't want to pay the taxman. They lost a lot of money unwilling to pay the taxman. To watch it happen was painful. If the company whose shares you own is doing badly sell the stock...We should absolutely stop focusing on not paying taxes. And instead, focus on whether the company is doing well or not," Cramer said.

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Chip Shortage

Ford  (F) - Get Ford Motor Company Report last week said it will extend downtime at several North American factories amid the worldwide semiconductor shortage that has hampered auto production and threatened global supply chains.

The automaker's plants in Chicago, suburban Detroit and Kansas City, Mo., will be idled the weeks of May 3 and May 10. An SUV plant in Ontario will also take an extra week of downtime in early May.

Cramer said Lam Research's  (LRCX) - Get Lam Research Corporation Report approach of secular growth is the way to fix the semiconductor shortage in the U.S. "It's not going to end, we're going to try to make as many as we can. They're building plans and doing their best and I think Lam's approach is the way to do it," Cramer said.

Ford is a key holding in Jim Cramer's Action Alerts PLUS member club. Want to be alerted before Jim Cramer buys or sells the stock? Learn more now.