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Did you miss last night's "Mad Money" on CNBC? If so, here are Jim Cramer's top takeaways for today's trading.
Are the markets overreacting to a Trump presidency?
Cramer said he thinks so when it comes to the private prison stocks and the gun makers. Just after the election, the prison stocks, led by CoreCivic and Geo, rocketed higher, while gun makers Sturm Ruger and Smith & Wesson plummeted.
On the surface, the moves seem logical, Cramer said. Trump has said he plans to deport millions of illegal immigrants, which is potentially great for federal prisons.
He also isn't likely to increase gun control, which makes the perceived need for buying guns a lot less urgent than it might have been under a Clinton administration.
But Cramer said the market was too shortsighted with these snap judgments, as private prisons have come under intense scrutiny since 2015 and the federal government is phasing out their use. These stocks also have a ton of debt and sky-high dividends that are red flags, Cramer said.
As for the gun makers, Cramer said, they have solid businesses that shouldn't be affected by Trump, at least not in the short term.
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