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11 Investing Themes For The Biden Era, According To Jim Cramer

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11 Investing Themes For The Biden Era, According To Jim Cramer

Joe Biden was sworn into office Wednesday as the 46th president of the United States. 

Markets across the world surged on Wednesday, with the Dow gaining more than 258 points, the S&P 500 up 1.4% and the Nasdaq up nearly 2%.

Former President Donald Trump was anti-immigration, pro-fossil fuel and hostile toward China, said CNBC "Mad Money" host Jim Cramer. 

In contrast, Biden is pro-immigration, against fossil fuels and much softer on China, he said. 

With a new administration in charge, the U.S. should see a change in the speed of the coronavirus vaccine rollout, the CNBC host said. The issue with vaccine rollout is that the federal government gave those involved in the distribution process the same amount of power in deciding what vaccines went where, Cramer said. 

"The problem is, when everyone is in charge, nobody is in charge." 

Here's what Jim Cramer says is ahead in 2021 with Biden in the White House:

E-Commerce: The pandemic accelerated the growth of e-commerce, and consumers in 2021 will not slow down on ordering from the comfort of their home, Cramer said. Companies like Amazon (NASDAQ: AMZN), and Walmart (NYSE: WMT) have only just begun, he said. 

Travel and Leisure: Once there is an effective vaccine distribution plan, travel will surge, helping companies like Marriott (NASDAQ: MAR) and Airbnb (NASDAQ: ABNB), cruise lines, airlines and companies like Boeing (NYSE: BA), the CNBC host said. 

Digitization and Cybersecurity: With more technological advancements to come in the cloud realm, Cramer said companies like Servicenow (NYSE: NOW), Microsoft (NASDAQ: MSFT) and Salesforce (NYSE: CRM), and cybersecurity companies such as Okta (NASDAQ: OKTA), will all be successful plays in 2021.

5G: A massive worldwide shortage exists of semiconductors allowing for massive growth from chip makers such as Qualcomm (NASDAQ: QCOM) and Intel Corp. (NASDAQ: INTC) as well as growth from cellphone service providers including T-Mobile (NASDAQ: TMUS).

COVID-19 Stimulus: With another round of stimulus payments expected to soon be in the hands of Americans, Cramer said retailers like Walmart, Costco (NASDAQ: COST), Amazon and Target (NYSE: TGT) could see upticks in their first-quarter earnings and continued growth through the year.

China: In Cramer's view, Biden is soft on China and companies that are already established in the atmosphere there like Apple (NASDAQ: AAPL), Nike (NYSE: NKE) and Starbucks (NASDAQ: SBUX) will benefit.

Wealth Management: Last year represented a surge for wealth and asset management companies such as Goldman Sachs (NYSE: GS), and Morgan Stanley (NYSE: MS), Cramer said.

Morgan Stanley was able to capitalize on a new generation of investors who believe that picking your own stocks is a "good way to manage your money," he said. 

Remote work: Even with the end of the pandemic on the horizon, remote work is here to stay, Cramer said. For the last 10 months, millions of white collar employees have worked from home, and eh said studies show that their productivity rose.

Companies such as Zoom (NASDAQ: ZM), and Amazon will benefit from the creation of more elaborate home offices, he said. 

Health Care: Biden doesn't have the votes in Congress to change much in regards to health care, Cramer said, adding that an effort is likely to try to make health insurance cheaper for working class Americans, boosting companies like Centene (NYSE: CNC) and Humana (NYSE: HUM).

Electric Vehicles: With the Democratic Party being strong on fighting climate change, Cramer said people will start to purchase more electric vehicles.

Companies like Tesla (NASDAQ: TSLA) and the manufacturers merging with special acquisition companies will see unparalleled growth, he said.

General Motors (NYSE: GM) could also see a strong growth year due to its investment in EV manufacturer Rivian, Cramer said. 

Housing: With Biden planning on extending policies allowing more freedom for undocumented immigrants, Cramer said millions of people could get credit to buy new homes, adding that homebuilders like Pulte Group (NYSE: PHM) will see increases in demand. 

 

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