This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

Cramer's 'Mad Money' Recap: Politics Is Overrated

Search Jim Cramer's "Mad Money" trading recommendations using our exclusive "Mad Money" Stock Screener.

NEW YORK ( TheStreet) -- Politics is overrated as a way to predict stock performance, Jim Cramer told "Mad Money" viewers Monday on the eve of the presidential election.

What really matters to stock prices, he said, is management and a company's business model, not who happens to occupy the White House.

When it came to technology, both Hewlett-Packard (HPQ) and IBM (IBM) made the decision five years ago to focus less on hardware and more on software and services. Yet, IBM shares are up 75% since then while Hewlett lost 71% during the same time. Why the difference? Execution and management.

During the Obama administration, Apple (AAPL), a stock Cramer owns for his charitable trust, Action Alerts PLUS , soared, while Intel (INTC) floundered. Why? Apple chose to focus on mobile while Intel didn't.

Many critics cite President Obama as being bad for unemployment, and they'd be right if you looked at shares of JC Penney (JCP), Radio Shack (RSH) or Best Buy (BBY), but not if you considered Wal-Mart (WMT), Costco (COST) or Home Depot (HD). Execution matters, said Cramer.

Whether it's the banks or the drug stocks, two more sectors impacted by Obama, Cramer said investors will find winners, like JPMorgan Chase (JPM), another Action Alerts PLUS name, and losers like Merck (MRK). The same is true in the consumer good sector, with Clorox (CLX) soaring under Obama, while Procter & Gamble (PG) barely budged.

Cramer told investors they need to focus less on politics and more on the companies they own.

The Difference Is Carbon

While both presidential candidates want America to become energy self-sufficient, only one thinks we should do so with fossil fuels, Cramer told viewers -- which is why if you think Mitt Romney will pull off an upset Tuesday, there's a whole host of stocks they should consider buying.

The difference between the candidates comes down to carbon. Obama hates it, while Romney feels we need energy independence by any means necessary, which means using more coal and oil along with natural gas as a surface fuel. That's why Cramer said Romney investors should consider stocks like Peabody Energy (BTU) and Arch Coal (ACI) in the coal patch, along with Schlumberger (SLB) and Halliburton (HAL) in the oil patch.

1 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Try it NOW
Only $9.95
Try it NOW
14-Days Free
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DIS $106.12 0.61%
HAIN $64.28 0.77%
AAPL $126.37 2.53%
FB $83.20 -0.13%
GOOG $552.03 0.67%


DOW 17,976.31 +263.65 1.49%
S&P 500 2,086.24 +25.22 1.22%
NASDAQ 4,947.4410 +56.2220 1.15%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs