The '60 Minutes' Selloff

The market hates it when President Bush takes a hit. I know that the market trades down when Bush talks, but you could see the air coming out of the tires during that CBS interview with Richard Clarke during "60 Minutes." Anything that damages the president gets taken out in this market almost immediately. (I write this as someone who voted against him, but recognizes that he would be "better" for stocks than Senator Kerry.

Israel's killing of the Hamas leader -- and the threat against the U.S. that that generated -- plus that Clarke interview really troubled this tape.

One reason why you know this is the case is how we start to slough off the negativity throughout the day.

I think there is a temptation to express the political risk as a function of the oil price. I feel it, too. But this morning's extra-special selloff looked like it was square at the feet of Bush's weakness, something that the market's still not priced in enough.

Is it a fair judgment that Bush is "better" for stocks than Kerry? I think it is fair to say that Bush would keep taxes lower for those in the market than Kerry would. Given that judgment, the market's move makes sense when it trades down on a "60 Minutes" interview.

Fortunately, there most likely will not be another negative interview tonight, allowing for the market to gradually recover.

But let's remember, it is a political year; these could become regular occurrences, bringing with them a concomitant downside.

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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."