Cramer's Morning Take: Debt Ceiling Drama & New COVID Wave 5/24/23

SPEAKER_1 (0:00)

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Jim Cramer (0:15)

The three time stops.

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Jim Cramer (0:28)

I'm Jim Cramer and you're about to hear a sample taken directly from today's CNBC Investing Club morning meeting.

I can't get away from the fact that this market is beginning to feel very much like the week of 2011 where people felt that maybe things wouldn't work out and the market went down every day regardless of what has happened. Jeff, it's just got that bad feeling too.

Jeff Marks (0:58)

Yeah, we're finally seeing the volatility that we've been bracing for over the last couple of weeks, why we've padded our cash position, topped it off, so to speak, to get it around 10% because we still have all that uncertainty around debt ceiling talks. Speaker McCarthy hasn't spoken to President Biden since Monday, the negotiators are expected to meet later today. So we'll see, we'll see, but the volatility is here.

Jim Cramer (1:23)

Yeah, there's no doubt about it that the Republicans are trying very hard to make things look like that you didn't get your Social Security check or your Medicare payments because of the president.

The nature, all the history of all these different, we have a lot of pollster data on it, says that the sitting president who is confidant with one of these things and also as a recession or inflation was his, loses.

And I think the Republicans see the data, just like everybody else, and they're going for broke. The problem, the problem Jeff, is that maybe they're going for broken that they wouldn't even mind if a treasury didn't pay. There was no way to roll over treasury. Or there's usually about 10 days and then that's when social security runs out of money. So maybe that can happen. If that's the case, then our cash is going to not be put to work until the oscillator goes to minus five, because we're just not oversold enough right now.

Jeff Marks (2:22)

Yeah, no, we're still in no man's land, oscillator in between zero, negative one. Also have worries around China weighing on the market as the country fights through a new COVID wave. China's benchmark stock index has erased all of its gains this year. And look what's happening in European stocks over the last couple of days. Some of the most loved luxury good makers over there that were pretty much untouchable stocks, LVMH, Hermes, carrying some other ones, Richemont, all reported really strong quarters this earnings season, but all giving back some of their recent gains over the last couple of days, just over concerns around what's happening in China and also in the US that's spilling out over to some of our positions today, whether it's Estee Lauder, Starbucks, Wynn Resorts.

But not enough attention, I would say, yet around the wave.

Jim Cramer (3:12)

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