From Yahoo Finance: 2025-04-09 10:20:00

Jim Cramer predicts a potential 36% market drop, highlighting the impact of White House policies and Peter Navarro’s anti-China agenda on corporate earnings and valuations. He warns of a looming recession and suggests a significant downside for the S&P 500 index.

Cramer discusses the economic landscape, emphasizing the focus on revenue generation over deal-making by the current administration. He warns of inflation, higher prices, and a possible recession without policy adjustments, signaling a shift in economic direction.

Cramer rejects comparisons to 2007 but notes signs of capital fleeing US markets, indicating a loss of confidence in American economic leadership. He cautions against rash decisions in a volatile market, stressing the need for careful evaluation and strategic planning.

Despite a Citi upgrade, Jim Cramer dismisses the bullish case for Dollar Tree Inc. (DLTR), questioning the company’s ability to raise prices due to tariffs. He highlights the supply chain limitations compared to larger retailers like Walmart and advises caution in investment decisions.

With 64 hedge fund holders, DLTR ranks 3rd on the list of stocks discussed by Jim Cramer. While acknowledging DLTR’s potential, the focus remains on AI stocks with greater promise for higher returns in a shorter timeframe, highlighting the performance of AI stocks in 2025 compared to popular options. Looking for a promising AI stock trading at less than 5 times its earnings? Check out our report on the cheapest AI stock pick available. For more information on the best AI stocks to buy now and stocks favored by billionaires, visit Insider Monkey. No disclosures in this article from Insider Monkey.

Read more: Jim Cramer Dismisses the Bull Case for Dollar Tree (DLTR): “Fatuous Reasoning”