Cramer Warns of 1987-like Crash Amid US-China Trade War

Jim Cramer, the host of the CNBC Show Mad Money, has expressed his views on the current stock market turmoil, which has been heavily influenced by the ongoing trade war between the United States and China. Cramer, who has previously supported Donald Trump on various matters, has taken a different stance on Trump’s tariff introduction, stating in a recent interview that he feels like a "sucker" for believing in Trump's tariff policies.

Cramer has predicted a potential 1987-like stock market crash due to the trade war. While the market has shown signs of recovery in recent days, the uncertainty remains high as long as the trade war persists. This uncertainty also increases the odds of a recession, which could further impact investor sentiment and market performance.

In light of these challenges, Cramer has shared his top stock picks for investors looking to navigate the turbulent market. These picks include Wells Fargo (WFC), Eaton (ETN), and Dell (DELL). Cramer believes that WFC is poised for a rally and is currently a cheap stock to buy, with the potential to generate significant returns. Regarding ETN, he acknowledges that its price has been affected by the trade war but believes it has long-term potential. Lastly, he views DELL as a stock that is being revived and advises investors to monitor its performance closely due to its volatility.

In addition to his top stock picks, Cramer has also identified several stocks that he believes investors should avoid during the trade war. These include Apple (AAPL), Nvidia (NVDA), BlackRock (BLK), Dupont (DD), and Danaher (DHR). Cramer is concerned about AAPL's production ties with China, which could lead to further performance issues. He also views NVDA as a meme stock and does not recommend holding it. BLK has underperformed amid the decline in crypto stock prices, and Cramer considers his decision to hold it a "big mistake." DD is seen as worthless due to its electronic device market, and DHR is criticized for its poor leadership under CEO Rainer Blair.

Despite the market's attempts at recovery, the uncertainty caused by the US-China trade tensions could lead to continued volatility, affecting stock prices. Investors are advised to engage in careful trading and continuously monitor market conditions and macroeconomic events. While Cramer's top stock picks could be considered, further research is recommended to make informed investment decisions.