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If Trump sticks with his promises, we'll find ourselves in a brave new world, Jim Cramer told his Mad Money viewers Monday, as saber-rattling out of China warned investors that a trade war is not a good thing.
Cramer said it's easy to predict some of the winners with a Trump presidency.
Trump favors cutting taxes, building infrastructure, boosting defense and getting tough on trade.
That's good news for retail and leisure, the materials stocks and, of course, Lockheed Martin (LMT) and Northrop Grumman (NOC) . But it's the last item -- getting tough on trade -- that cuts both ways.
Today, news out of China warned that a trade war could see Boeing (BA) orders replaced with Airbus, and sales of everything from cars to iPhones getting crimped. That news sent shares of Apple (AAPL) , an Action Alerts PLUS holding, down 2.5%, and General Motors (GM) down 2%.
Boeing and Apple may be only just the beginning, Cramer said; many U.S. companies need overseas markets to thrive. With these new risks, the markets become less clear, he concluded, and that takes us into uncharted territory.
Jim Cramer and Jack Mohr are trimming their Panera (PNRA) position on strength. Read why and what they're telling their members with a free trial membership to the Action Alerts PLUS investment club.
Executive Decision: Harman
For his "Executive Decision" segment, Cramer sat down with Dinesh Paliwal, chairman and CEO of Harman International (HAR) , the auto infotainment maker that today announced it is being acquired by Samsung (SSNLF) for $112 a share -- a 25% premium from where shares opened for trading.
Paliwal said that the technological transformation in cars continues and in today's market, scale matters. When Harman began talking to Samsung, he said, there were so many complementary technologies being developed, from 5G connectivity and high-resolution displays to speech recognition, and there was hardly any overlap.
Under the terms of the deal, Harman will retain its headquarters and its management team, acting as a subsidiary of Samsung. This gives Harman deep research and development resources, Paliwal added.
Harman is not standing still, as the company has doubled down on cyber security, acquiring another company to help keep its products secure. Cyber attacks can happen to your home, your car or your devices, he said, and Harman takes the challenge seriously.
Cramer's bottom line, "Paliwal saw a lot of things coming and got a lot of things right."