Casinos should have a “huge year” in 2021, and the stocks will be up against very easy comparisons, CNBC’s Jim Cramer said Monday on “Mad Money.”
What Happened: The U.S. joined a handful of other countries in beginning the distribution of a vaccine against the novel coronavirus this week.
As the number of vaccinated people shifts from dozens to tens of millions over the coming months, the economy could usher in a rebound in travel, especially to casino destinations, Cramer said.
“Americans are ready to gamble again,” he said.
Why It’s Important: The case for buying casino stocks is based a lot more than just “enormous” pent-up demand and upcoming earnings reports that will stack up against a dismal 2020, Cramer said.
Instead, President-elect Joe Biden will likely demonstrate a less hostile stance against China, a lucrative and important market for U.S.-listed casinos, the CNBC host said.
“I think Trump’s trade war was the right move, but Wall Street hated the trade war every step of the way — so money managers are giddy that Biden’s going to lower the temperature,” Cramer said. “That’s another reason why the casino stocks have been flying.”
What’s Next: Some casino stocks are already showing signs of momentum, and Cramer said this signals a strong year for the industry in 2021.
“The charts don’t lie, and these charts are screaming that the Chinese trade war is about to be over, and so is the pandemic,” he said.
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