The political types are already citing the new health care regime as a reason to sell stocks, but that might prove to be wrong because the large companies are precisely the ones that can navigate these new waters. Their smaller-capitalization and private small-company rivals are the ones that should fall by the wayside. That will soon be seen as logical, but a lack of business savvy by the White House didn't see this coming any more than it didn't see the Web site issues coming.
So, to sum up, the smell test does get vindicated back-handedly by the transition that has historically occurred now. The investing that has come previous to this moment is from people who recognize that bad news has historically led to good news and they have been driven by individual stock performance as well as pattern recognition. The asset-class hunters and the corporate buybacks have been convenient props to the whole process, which is why this move that is so explosive, the one that shouldn't be happening, is indeed prevailing.
I feel badly for those who wait for things to smell better. They may not know history. They might be confused by politics and the need to have a balance between a bull and a bear debate driven by politics. But they, in the end, shouldn't be pitied. They convinced themselves they were right and by doing so they were perfectly willing to forgo the gains to date.
I think they will most likely forego the next set of gains, too. A combination of blindness from the inability to believe that stocks can really rally under Obama, coupled with an underestimation of the Federal Reserve's will, abetted by the nonpolitical historical buyers who are not now going to turn sellers precisely because they know the history and fear a stock shortage among seasoned equities -- the IPO market has provided tons of unseasoned and often disrespected fodder -- could end up propelling us to the next level. Oh, and believe me, to these purists, that advance will stink to high heaven, too. At the time of publication, Action Alerts PLUS, which Cramer co-manages as a charitable trust, had no positions in stocks mentioned.Editor's Note: This article was originally published at 7:24 a.m. EST on Real Money on Dec. 9.