Jim Cramer says Trump’s behavior has overshadowed U.S. economic strength

CNBC’s Jim Cramer said Monday that investor sentiment has gotten too negative but could improve if President Donald Trump clarifies his tariff policies.

Measures like inflation and unemployment have shown positive signs for the economy, and the stock market soared last year, Cramer said. But despite these bullish signals, the Trump administration’s tariff policy and its attitude toward both allies and foes have darkened investors’ moods, he said.

“Everything about this economy is good. Everything, everything except one thing: We have a president who is very angry at everyone,” Cramer said. “His wrath has made investors so downcast and so negative that people have just given up. They want nothing to do with stocks.”

But Cramer said Trump’s tariff announcements on Wednesday — what the president has dubbed “liberation day” — could reduce economic uncertainty for investors. If Trump stops picking fights with allies and allows the economy to grow, that could boost the stock market, he said.

Investors are “exhausted” by the president’s behavior and policy changes, Cramer said. He cited BlackRock CEO Larry Fink’s annual letter published Monday, in which Fink wrote that people are now “more anxious about the economy than any time in recent memory.”

But fears of stagflation are overblown, Cramer said. If Trump starts acting like the pro-business president people voted for, he said, the U.S. could see a more confident economy.

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Disclaimer The CNBC Investing Club Charitable Trust holds shares of BlackRock, Capital One and Wells Fargo.