Joe Biden signed more than a dozen executive orders after taking the presidential oath of office Wednesday, undoing some actions taken by his predecessor over the last four years and prompting CNBC’s Jim Cramer to dream up two new market themes for 2021.
The new investment ideas involve electric vehicles and housing and are an appendix to 10 investment themes he expects Wall Street to follow that he introduced at the beginning of the month.
“Be ready for more stringent environmental regulations that push people into electronic vehicles,” he said on “Mad Money” after Wednesday’s close.
As part of his first executive actions taken, President Biden signed an order for the U.S. to rejoin the Paris Agreement on Climate Change, an international accord formed under the Obama administration, moving away from environmental policies put forth by the Trump administration.
The country’s renewed focus on tackling climate change, Cramer said, will be a boon for established electric car companies and green energy producers, like Tesla and Plug Power, as well as the bevy of budding electric vehicle producers coming public via blank check mergers.
Cramer’s watchlist includes Lordstown Motors, Northern Genesis, the special purpose acquisition company (SPAC) merging with Canadian manufacturer The Lion Electric, and Ciig Merger, a SPAC targeting British carmaker Arrival.
Housing is another market of opportunity on the “Mad Money” host’s theme list. His forecast is powered by Biden’s stance on immigration. The Democrat also signed orders to end Trump’s Muslim ban and reverse a Trump order to exclude undocumented immigrants from the reapportionment of House seats.
The Biden administration also pledged to send lawmakers an immigration reform measure that would provide an eight-year pathway to citizenship for undocumented immigrants and includes language for refugees.
The pro-immigration stance could help homebuilders even more as millions of new consumers would gain more to the housing market, Cramer said, pointing to stocks like Toll Brothers, KB Home, Pultegroup, DR Horton and Lennar.
“After what we’ve heard from Fed Chief Jerome Powell and incoming Treasury Secretary Janet Yellen, I believe [interest] rates are going to stay low for a long time, maybe years,” he said. “There are at least 10 million undocumented immigrants who will soon be able to come out of the shadows and ask for credit to buy a home and that will be amazing for the homebuilders.”
Disclosure: Cramer’s charitable trust owns shares of Ford.