Jim Cramer: The Election Was Bullish For Stocks

On CNBC’s Mad Money, Jim Cramer credited the election for the rally in stocks, and said the results cleared up a lot of uncertainty. Stock investors tend to see the Republicans are more pro-business, and stocks tend to rise with Republican victories. In addition, a Democrat in the White House having Republicans to contend with legislation proposals will likely lead to gridlock. Stocks tend to do well when nothing happens in Washington.

Lockheed Martin (LMT) is a strong defense stock to buy, as the Republicans tend to spend more on defense. Banks are good to buy, but they need a higher interest rate environment. Cramer would buy regional bank Sun Trust. One thing many pundits are saying that Cramer disagrees with, in fact he said, “I’m going to pull what’s left of my hair out if I hear this again, ” is that a Republican Senate means the Keystone Pipeline is more likely to be built, and stock pickers are saying buy pipeline companies. Cramer believes Obama is so anti-fossil fuel that he sees this scenario as unlikely, and would be aware of the oil patch right now. Restaurant stocks are likely to benefit from lower oil prices, as well as retailers, but he has noticed weakness in mall-based retailers.