If CNBC’s Jim Cramer knows one thing about the United States Congress, it’s that “a house divided against itself can produce some amazing profits” for investors, he said one day after the 2018 midterm elections.
On Tuesday, the Democratic Party regained control in the House of Representatives, while the Republican Party maintained its majority in the Senate. Results like these tend to cause congressional gridlock, which is usually good for stock-pickers, Cramer said.
“What do you do in this situation? You buy the fastest-growing companies, the ones that can keep making their numbers in a slowdown,” he said. “Don’t overthink it.” Among his recommendations were the cloud stocks, as well as the stocks of Amazon and Apple.
On top of that, Wednesday’s news that Attorney General Jeff Sessions resigned under pressure from President Donald Trump created an additional opportunity for investors, the “Mad Money” host said.
“I’ve got to admit that the White House is a neverending source of fantastic stock opportunities,” he said. “The news of his departure sent Canopy Growth and the rest of the cannabis stocks flying, as investors wagered that no attorney general could be worse on this issue.”
“Canopy and its punitive owner, Constellation, remain the best ways to play eventual legalization here,” Cramer continued. “Please don’t overthink that, either.”
Click here for the rest of his recommendations.