Jim Cramer Says Georgia Runoff Election Is Creating Sellers Tuesday

In Tuesday's market breakdown, Jim Cramer and Katherine Ross talk Georgia, bitcoin, new COVID strains, China, Qualcomm and more.

Author:: Katherine Ross
Updated:: Jan 5, 2021 12:18 PM EST
Original:: Jan 5, 2021

The Georgia runoffs take place today and investors are closely watching these Senate races since the elections will determine whether or not the Democrats take control of Congress.

If Democrats take control, then more--and probably greater--fiscal stimulus is expected alongside higher taxes. Jim Cramer has said in the past that he--alongside the market--prefers gridlock. If Republicans maintain control of the Senate seats, then the current gridlock continues.

In his daily interview with TheStreet Live, Cramer said the uncertainty around the election is naturally creating selling as Wall Street's nerve is tested.

"We end up with people that say, 'You know what, who needs this? I've got big profits; let me take them," Cramer said.

In the video below, Jim Cramer talks, Georgia, bitcoin, his 2021 investing themes, Qualcomm and more.

And JPMorgan has a prediction on bitcoin. Analysts penned a note saying that long-term, they are putting a price target of $146,000 on bitcoin.

The note says that the price target is based on the assumption that the cryptocurrency will grow in popularity as an alternative to gold, which has traditionally been used as an inflation and volatility hedge, as well as protection against a falling U.S. dollar.

Cramer said the nod from yet another Wall Street institution will be a boon for bitcoin prices.

"The more people that give it a higher price, the more people will be coming in," Cramer said.

The New York Stock Exchange announced late Monday that it was scrapping its plans to delist China's three largest telecommunication companies.

In a statement, the NYSE said “it no longer intends to move forward with the delisting action." The NYSE cited "consultation with relevant regulatory authorities" for its reversal.

Just last week, the NYSE said it would remove the shares to comply with a U.S. government order that bars investments in 35 companies owned or controlled by the Chinese military.

Cramer said the reversal from the NYSE is well-timed given President Trump's focus on elections, both the presidential, which he continues to allege was fraudulent without evidence, and the Georgia runoff.

"I think the President is so distracted, this is the perfect time for the NYSE to reverse its policy," Cramer said.

Curious about what Jim Cramer and his team at Action Alerts PLUS are watching in the markets? Watch Cramer's exclusive members-only Daily Rundown show on Action Alerts PLUS following TheStreet Live.

You can follow Jim Cramer and Katherine Ross on Twitter at @JimCramer and @byKatherineRoss. Read more from Katherine Ross here.