Joe Biden signed more than a dozen executive orders after taking the president’s oath of office on Wednesday. He reversed some of his predecessor’s actions over the past four years, prompting CNBC’s Jim Cramer to come up with two new market themes for 2021.
The new investment ideas cover electric vehicles and residential real estate and are an appendix to 10 investment themes he expects to follow Wall Street which he launched earlier this month.
“Be ready for stricter environmental regulations that push people into electronic vehicles,” he said after the close of trading on Wednesday at Mad Money.
As part of his first executive action, President Biden signed an order for the United States to accede to the Paris Agreement on Climate Change, an international agreement made under the Obama administration, and to move away from the Trump administration’s environmental policies.
Cramer said the country’s renewed focus on combating climate change will be a boon to established electric car companies and green energy producers like Tesla and Plug Power, as well as the throng of aspiring electric vehicle manufacturers who are coming to the public through blank check mergers.
Cramer’s watch list includes Lordstown Motors, Northern Genesis, the Special Purpose Acquisition Company (SPAC), which is merging with Canadian manufacturer The Lion Electric, and Ciig Merger, a SPAC for British automaker Arrival.
In addition, Cramer said he was warming up to electrification efforts by traditional automakers like Ford and General Motors.
Housing is another market of opportunity on the host’s Mad Money list of topics. His forecast is based on Biden’s stance on immigration. The Democrat also signed orders to end Trump’s Muslim ban and repeal a Trump order to exclude undocumented immigrants from reallocating house seats.
The Biden government also pledged to forward an immigration reform measure to lawmakers, offering undocumented immigrants an eight-year path to citizenship and including the language for refugees.
The immigrant-friendly stance could help builders even more as millions of new consumers get more into the property market, Cramer said, citing stocks like Toll Brothers, KB Home, Pultegroup, DR Horton and Lennar.
“From what we’ve heard from Fed Chairman Jerome Powell and the new Treasury Secretary Janet Yellen, I believe [interest] Interest rates will stay low for a long time, maybe years, “he said.” There are at least 10 million undocumented immigrants who will soon be able to get out of the shadows and ask for credit to buy a home and it will be amazing for home builders. “
Disclosure: Cramer’s charitable foundation owns shares in Ford.
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