Jim Cramer Warns Houthi Assault In Red Sea Could Impede Fed's Fight Against Inflation, Advises Investors To Be Cautious
Portfolio Pulse from Benzinga Neuro
Jim Cramer, on CNBC's 'Mad Money', warned investors about the potential impact of the Red Sea crisis on inflation and the Fed's efforts to control it. The crisis has disrupted global shipping routes, leading to higher shipping costs and potentially higher crude prices. Cramer advised against investing in shipping stocks and suggested owning stocks like FedEx Corp (FDX) or Canadian Pacific Kansas City Ltd (CP) instead. The crisis, exacerbated by a U.S. tanker seizure by Iran and Houthi rebel attacks, could significantly impact the broader economy and market sustainability.
January 19, 2024 | 4:22 am
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POSITIVE IMPACT
Canadian Pacific Kansas City Ltd (CP) was mentioned by Jim Cramer as a better investment choice compared to shipping stocks in light of the Red Sea crisis and its impact on inflation.
Cramer's recommendation of CP as an investment could attract investor attention away from shipping stocks and towards CP, potentially benefiting CP's stock price in the short term.
CONFIDENCE 75
IMPORTANCE 60
RELEVANCE 70
POSITIVE IMPACT
Jim Cramer recommended FedEx Corp (FDX) as a preferable investment over shipping stocks due to the Red Sea crisis potentially driving up shipping costs and affecting inflation.
Cramer's endorsement of FDX as a better investment option than shipping stocks due to the Red Sea crisis could lead to increased investor interest in FDX in the short term, potentially driving up its stock price.
CONFIDENCE 75
IMPORTANCE 60
RELEVANCE 70