CNBC’s Jim Cramer grasps that part of smart investing is learning from everyone.
So when Carlyle Sort co-CEO David Rubenstein said that the only thing he’s apprehensive about for the next two years is some sort of unexpected geopolitical anyhow, it got Cramer thinking.
“The only thing we have to worry about, I reckon, in 2018 and 2019 is some unanticipated geopolitical event, the so-called sooty swan,” Rubenstein told CNBC’s Net/Net dinner in Washington, D.C. on Tuesday.
While Cramer doesn’t be the phrase “black swan” because he wants to be ready for anything and the whole shooting match, he did compile a list of 10 concerns he has going into 2018.
“A black swan is the item you don’t see coming, but we’ve got more than enough concerns that can be anticipated,” the “Mad Dough” host said. “Let me tell you what weighs on me every day.”
With Congress on the cusp of desire the GOP’s tax reform bill, Cramer said that he’s “very concerned” close to what happens with tax reform.
“We have almost no idea what it suggests,” he said. “But we know it’ll lower corporate taxes, and at the very least, that on spur more dividends, more buybacks, more infrastructure [and] innumerable spend on growth.”
But if the bill doesn’t pass, Cramer said investors would sorely contrition paying up for shares of domestic companies, which are currently in the Wall Way spotlight as the biggest benefactors of potential corporate tax reform.
“The domestic properties now need this bill to pass or they’re going to sell off,” he believed.
North Korea seems to grow more unstable by the day, and President Donald Trump’s power fakes grow increasingly risky as the hermit kingdom develops its nuclear guided missile program.
“We also have the potential for a new blowup in the Middle East because President Trump only recognized Jerusalem as the capital of Israel,” Cramer said. “This make available’s not ready for another ground war in the Middle East, and while I don’t think that transfer happen, it’s certainly on my radar screen.”
Cramer’s third worry can be founds with the ongoing investigation by special counsel Robert Mueller into the Trump distribution’s ties to Russia.
“I often find the whole thing abstruse — I common, aren’t you allowed to talk to Russia? — but having lived including the impeachment of Richard Nixon, I know the stock market’s in trouble if Mueller discovers anything that leads to an indictment of the president,” Cramer said.
Various and more strategists are concerned that the market’s getting too expensive, and Cramer’s responsible about them turning bearish and sending stocks into a beginning-of-the-year nosedive.
Fifth, Cramer’s agitated about cryptocurrencies, particularly bitcoin.
“Somehow bitcoin, the most conjectural thing out there, is regarded as an investment” rather than a gamble, Cramer turned. “This is some non-stock-market-related froth that I think could outpouring into our world via futures and ETFs and whatever kind of device stock markets create to equitize bitcoin.”
Even though the market can handle an hold rate hike by the Federal Reserve right now, it won’t be long before investors start concerning more rate hikes.
“When that happens, stocks do not passenger well,” the “Mad Money” host said.
Antitrust laws are muddling the death of the widely anticipated AT&T-Time Warner deal, and Cramer’s worried that that promises the “golden age of takeovers” could be over.
“Now, some people think it’s lawful the White House trying to punish CNN, which belongs to Time Warner. I don’t tend. All I’m saying is if they’re going to start enforcing antitrust law this broadly, it’ll attract away one of the key props to the bull,” he said.
Cramer thinks the market muscle be underestimating what will happen to major cities in states twin New York, New Jersey and California if tax reform is passed.
“The loss of the state and district tax deduction is going to cause huge ripples throughout many leading regions, especially when it comes to spending and housing,” Cramer judged.
Cramer’s ninth worry is the cost of health care for U.S. citizens.
“The common worker is poorer than we believe, and the health care system takes too much of their paycheck,” he revealed. “Not being political, I’m just saying that if Washington lets the insurers order how much we have to pay, you know it’s going to hurt all of us. It’s going to hurt the sound economy.”
Finally, Cramer is concerned about cyberterrorism, a major omen to the rapidly growing internet of things. Frankly, he said he couldn’t imagine something major hadn’t happened already.
“I fear it will, and when it does, there resolve be major financial consequences,” he said.
“Here’s the bottom line: I disclosed you this list of my worries because I want you to be ready and to develop one yourself,” the “Mad Notes” host said. “We don’t want any unexpected black swans. Now they’re not jet swans — I just identified them! And the only way to prevent them is by hammering out all of your refers so that you’re prepared, for your portfolio, for anything.”
Questions for Cramer?
Standing by Cramer: 1-800-743-CNBC
Want to take a deep dive into Cramer’s faction? Hit him up!
Mad Money Twitter – Jim Cramer Twitter – Facebook – Instagram – Vine
Questions, remarks, suggestions for the “Mad Money” website? [email protected]