Independent presidential candidate Robert F. Kennedy Jr. attends a Cesar Chavez Day event at Union Station on March 30, 2024 in Los Angeles, California.
- CNBC's Jim Cramer said drug and junk food industries aren't necessarily headed for ruin if vaccine skeptic Robert F. Kennedy Jr. leads HHS.
- "Ultimately, if RFK dons jackboots and demands that we don't have vaccines or eat junk food, it probably won't matter," he said. "The interests within the government, notably the staff, will push back and the food lobby will push back. And, most important, Americans just don't like being told what to do."
- The enormous federal organization houses major health agencies in the U.S., like the FDA, the CDC and the NIH, and it's also responsible for the Medicare and Medicaid programs.
Even with vaccine skeptic Robert F. Kennedy Jr. tapped to potentially lead the Department of Health and Human Services, CNBC's Jim Cramer said drug and junk food industries aren't necessarily headed for ruin.
"Ultimately, if RFK dons jackboots and demands that we don't have vaccines or eat junk food, it probably won't matter," he said. "The interests within the government, notably the staff, will push back and the food lobby will push back. And, most important, Americans just don't like being told what to do."
President-elect Donald Trump nominated Kennedy as secretary of HHS on Thursday, but the former presidential candidate will need Senate approval before he can step into the role. The enormous federal organization houses major health agencies in the U.S., like the Food and Drug Administration, the Centers for Disease Control and Prevention and the National Institutes of Health, and it's also responsible for the Medicare and Medicaid programs.
To Cramer, Kennedy's appointment would upend HHS as he "wants to undo some of biggest public health advances of the last century," citing his issues with vaccines — an area where the U.S. is a global leader. At the same time, Cramer added, Kennedy has taken a hard stance against processed food.
Many drug and processed food stocks have already shouldered heavy losses since Trump named Kennedy, including Eli Lilly, Bristol-Myers, Moderna, PepsiCo, J.M. Smucker and General Mills. However, Cramer said he is doubtful Kennedy's agenda will end up affecting pharmaceutical and food giants, as it's hard for the government to "lay a glove" on these industries. He pointed out that some drug powerhouses produce lucrative products other than vaccines, and many government attempts to limit processed foods have failed in the past.
But Cramer said he's not recommending investors go out of their way to purchase these stocks, especially ones related to vaccines. Plus, he continued, drug and junk food stocks aren't particularly good investments during a rate-cutting cycle.
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"For now, nobody wants to take a chance on these already out-of-favor industries," Cramer said. "And, you know what, I can't blame them," he said.
Representatives for Kennedy and the Trump campaign did not immediately respond to requests for comment.
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