In a recent report, we highlighted Jim Cramer's alarming prediction regarding a potential 36% decline in the stock market as he reviewed nine key stocks. In this article, we will delve deeper into The Walt Disney Company (NYSE:DIS) and how it compares with other stocks discussed by Cramer.

During his appearance on CNBCs Squawk on the Street this past Monday, Cramer provided critical insights into the factors contributing to the current market upheaval. He stressed that the markets have yet to fully account for the extensive implications of the policies emerging from the White House. With Peter Navarros anti-China agenda shaping the current economic and geopolitical climate, Cramer cautioned that corporate earnings and valuations are undergoing a fundamental transformation, leading to a stark outlook for investors.

In a bold forecast, Cramer speculated on the potential floor for the S&P 500 index. I think that the way you want to look at it is what multiple do you put on the new earnings estimates for the S&P. And I think that the S&P people thought it would be 270 to 280; now its going to be 230. I think you have to put a worst case, 14 times, because markets have tended to bottom at 14 times earnings and that gives you a 36% downside from here, he explained. He further illustrated his point, stating, Were still at 20, thats the problem. You take it down to 14, where its historically bottomed, you multiply it by 230, and you get S&P 3220, and that should be your bottom.

This assessment is particularly concerning given the recent fluctuations in the market, which have left many investors reeling and questioning the stability of their portfolios. Cramers references to historical metrics highlight the gravity of the situation and serve as a cautionary signal for those engaged in stock trading or investment.

Cramer then elaborated on the economic trajectory we may face in the near future. He indicated a shift in the current administrations approach, suggesting that the focus is no longer on negotiating beneficial deals but rather on revenue generation. Youve got this dichotomy. I mean, this is a man whos not talking about negotiating. Hes talking about raising a lot of revenue, he stated. He also warned that if the current path continues unchecked, the economy might be barreling toward a recession. In the interim, weve got inflation because theres bargaining, but everybody has to pay higher prices and ultimately a recession if there is not some sort of accommodation made, he added.

Moreover, when discussing the current economic environment, Cramer was cautious to differentiate it from the financial crisis of 2007. While he rejected direct comparisons, he did note that capital is escaping U.S. markets, a troubling sign that may reflect waning confidence in the economic leadership of the nation. This trend could have serious repercussions not only for investors but also for the overall economic health of the country.

In summary, Cramer's predictions underscore the volatility of the current market landscape and the need for investors to be vigilant and informed about the shifting economic policies and their potential impacts.