Make sure your stock portfolio is little exposed to China.



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Investors should be wary of claims that China will pay higher tariffs, said CNBC's Jim Cramer. These costs will rather be borne by US consumers, and investors should adjust their portfolios accordingly.

"As long as the president [Donald] Trump thinks that it is the Chinese who are paying the price, he will continue to take a harsh approach in these negotiations, which means that your portfolio should be as little exposed as possible to China, "said the host. "Mad Money".

The portfolio managers said the market was a tough place to buy stocks as Wall Street sorted security names and reassessed earnings forecasts for companies affected by the China-China trade war, Cramer said. . He also warned that the current uncertainty would be the "new standard" until the two largest economies in the world reach an agreement.

That explains the decline of about 84 points in the Dow Jones Industrial Average on Monday, the 0.67% drop on the S & P 500 and the loss of 1.46% on the Nasdaq Composite, he said. .

"Unfortunately, we do not know when this could happen – people in this country are just beginning to realize that President Trump has had it with the Chinese," Cramer said. "He has no desire to continue negotiating even if they want to come to the table."

Trump's choice to list Blacklist on Chinese company Huawei has put pressure on US semiconductors supplying components to the telecommunications giant.

Since the decision last Wednesday by the Trump administration to hinder business relations with Huawei, Qualcomm shares have fallen by nearly 12%, Micron Technology by more than 10% and Analog Devices by more than 10%. The VanEck Vectors Semiconductor ETF, a broad base for tracking chip manufacturers, is down nearly 8% over the same period.

"It's an amazing pain for US companies to say that we will not let Huawei get ahead of us in the 5G race, and some of these chip makers are getting a score of 5 to 10, or even 15% of their sales of Huawei.It's a big problem to close them from this account. "

Google's parent, Alphabet Sunday, has stopped supporting Android hardware and software on Huawei phones. This decision also detracted from Alphabet's stock, which fell by more than 2% during Monday's session.

The stock market expects that China's retaliation will target Apple, which employs more than 2 million people in the country, Cramer said. Apple shares plunged more than 3% Monday, and the host said that he could not blame investors for worrying.

Disclosure: The Cramer Charitable Trust holds shares in Alphabet and Apple.

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