CNBC host Jim Cramer warned investors on Monday that chasing oil stocks amid the Venezuela turmoil is a “suboptimal” strategy, urging them instead to pivot toward undervalued sectors like banking for long-term gains in 2026.

The Fallacy Of The Venezuela Trade

Despite the geopolitical shockwaves caused by President Donald Trump's actions regarding Venezuelan leadership, Cramer argues the window for easy profits has already closed.

While stocks like Chevron Corp. (NYSE:CVX), Valero Energy Corp. (NYSE:VLO), and Halliburton Co. (NYSE:HAL) surged on speculation regarding Venezuela's oil reserves, Cramer cautioned that these names “opened too high.”

“You had to pay top dollar to get into this game today,” Cramer said, noting that the infrastructure required to revitalize Venezuela's oil output will take years, not days, to rebuild.

Drawing a parallel to the Iraq War, he reminded viewers that it took nearly a decade for Iraq’s production to double. For traders buying now, the risk of losses is ...