Bush the Market's Better Bet

We gotta stop kidding ourselves. You may think that George Bush is the most incompetent president on Earth. You may think that attacking Iraq was the worst idea in the world. You may blame Bush for 9/11 -- none of which I think or believe, I am simply putting out the litany for you.

But it is inconceivable that Kerry could be better for the stock market than Bush. Inconceivable. President Bush favors the investing class like it's his family, for heaven's sake. He has made getting rid of taxes the most important part of his re-election campaign and a low-tax environment is most positive for equities. He would do anything to make it so companies are more profitable and can pay bigger dividends. He totally sides with capital over labor, if you believe in that distinction.

Mind you, that doesn't mean I think he is right. However, remember my litmus test: Barring ideological concerns that I care deeply about, I favor positions that will, over time, create a bountiful equity market, and Bush has created those conditions.

Which is why I think it is so silly to email me and tell me that the antiterrorist expert who ratted out Bush on "60 Minutes" doesn't impact the market. Anything that shows Bush could have trouble winning in November I am putting directly in the "negative for the stock market" camp. I will continue to do so until Kerry takes a no new-taxes pledge, something he can do easily given the fact that there is clearly a government bond shortage or we wouldn't have rates where they are.

You may be for Kerry. Heck, I may be for Kerry. But please, let's not pretend that he'd be as good for the stock market as Bush. That's foolish. And let's not pretend that Richard Clarke didn't do damage to the president's case. Until Clarke opened his mouth it was Kerry who was on the defensive, not Bush.

Today that just can't be said. The guy was just too convincing. They don't bring Condoleeza Rice out to do the circuit if this guy didn't do damage. And damage to Bush right now is an open invitation to sell stocks, until we get to some level where the market discounts a Bush loss.

Could happen; isn't here yet.

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James J. Cramer is a director and co-founder of TheStreet.com. He contributes daily market commentary for TheStreet.com's sites and serves as an adviser to the company's CEO. Outside contributing columnists for TheStreet.com and RealMoney.com, including Cramer, may, from time to time, write about stocks in which they have a position. In such cases, appropriate disclosure is made. To see his personal portfolio and find out what trades Cramer will make before he makes them, sign up for Action Alerts PLUS by clicking here. While he cannot provide personalized investment advice or recommendations, he invites you to send comments on his column to [e-mail]. Listen to Cramer's RealMoney Radio show on your computer; just click here. Click here to buy Cramer's latest book, "You Got Screwed!" Click here to order Cramer's autobiography, "Confessions of a Street Addict."