Not all Trump remarks are investing opportunities

CNBC’s Jim Cramer on Thursday cautioned that President Donald Trump‘s comments, however highly-publicized, will not always yield solid investments.

“I think we have to expect that President Trump will say something every day that gets a ton of coverage,” he said. “We need to monitor these statements, but, look, we can’t expect all of them to generate actionable investing ideas, even if they do produce bullish animal spirits that boost the market.”

Cramer encouraged investors to take some of the president’s big-picture proclamations with a grain of salt, saying such broad ideas aren’t what usually move the market. He also said that some of Trump’s plans might not play out at face value, he continued, such as the president’s sweeping energy policy meant to encourage drilling. Oil producers may not immediately take advantage of these allowances, Cramer said, and so the wider group isn’t investible just yet. And Trump’s demands to lower interest rates hold little weight, Cramer continued, as the Federal Reserve makes those decisions. The president would need to shrink the budget deficit to send rates lower, Cramer added.

But Trump can invoke some catalysts, Cramer said, and he pointed to White House’s recent announcement that it’s partnering with Big Tech names like Oracle and Nvidia to invest in artificial intelligence infrastructure. The major data center buildout verifies the demand for products from companies like Nvidia, he continued.

One theme poised to see lasting success is banks, Cramer said, due to Trump’s proclivity for deregulation. BlackRock is tied to the bull market Trump wants to fuel, he said, and Goldman Sachs stands to benefit from increased merger activity. However, Trump’s criticism of Bank of America for supposedly refusing to serve conservatives is not an investible idea, Cramer continued. The bank denied the accusation.

“Trump wants the banks to succeed, and a higher stock market is the badge he craves,” he said. “Even if he’s saying bad things about Bank of America.”

The White House did not immediately respond to request for comment.

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Disclaimer The CNBC Investing Club Charitable Trust holds shares of Nvidia, BlackRock and Goldman Sachs.