The stock market surging to record highs has nothing to do with the GOP promise of tax reform, CNBC’s Jim Cramer said Friday.
“I disagree with the analysis that it’s the tax code,” the “Mad Money” host said. “It’s about worldwide expansion. It’s not about what is happening in this country.”
Some analysts on Wall Street have attributed the market’s rise since the election to the promise of tax reform, deregulation and other business-friendly proposals from President Donald Trump.
The promise of tax reform is not in the market “because we’re not going to get anything,” Cramer added on “Squawk on the Street.” “If you’re buying on [tax reform] you’re going to be disappointed.”
It has not helped investors to focus on anything coming out of Washington, Cramer said. “The White House does not agree with Congress to get where they have to go” and “there’s a lot of stuff thrown away,” he said.
Republicans unveiled their blueprint for tax reform last week. It calls for cutting personal and corporate tax rates and aims to simplify the tax code.
Cramer said he agrees with IMF Director Christine Lagarde who sees strength in India, Europe, and China in addition to the U.S.
Cisco did not have a great quarter, but its shares have remained strong “because it’s got $70 billion largely overseas,” he added
U.S. stocks fell on Friday after the latest jobs report disappointed Wall Street. The S&P 500 on Thursday closed at its sixth straight record high; that’s the longest such run since 1997. The Dow, Nasdaq and Russell 2000 are also coming off record high closes, with the Dow riding a seven-day win streak and the Nasdaq up for eight straight days.