This column was originally published on RealMoney on Nov. 8. It's being republished as a bonus for TheStreet.com readers. For more information about subscribing to RealMoney, please click here.
We like to jest on "Mad Money" that we have a government by and for the corporation. That means you can count on this government to side with business and with shareholders against any other interest. Only the judiciary sometimes slips up and gives the nod to the consumers.
Now that's going to change.
I know gridlock means a good situation for the government, but this is a P/E-lowering event for certain because the Democrats have historically sided with the consumer, not the shareholder, and that will only be exacerbated by the wilderness perspective that the Democrats bring to the table. They have sat back while the Republicans have voted to give corporations and rich shareholders every single break imaginable, and that's done.
So, why not sell everything? Because the ability of the Democrats to do anything but make corporations and their shareholders look and feel bad is in question.
My experience during the 1990s tells me that you see these cracks in the corporate franchise in the hearings on the Hill. For example, every time I ever got comfortable with the drug stocks in the 1980s and 1990s, Henry Waxman, who will now be a big man in the House, would hold hearings on the profit margins of the drug companies vs. the people. Ugh! That means you always have to be aware of Washington if you own those stocks. Same with defense hearings. Same with hearings about why gasoline went to $3 and change.
So what do you do with this? It's pretty simple.
You have been able to ignore Washington for years, save for
or if you run a hedge fund. Starting today, you can't. It's now a risk factor. We don't like risk factors. But we have a new one. And it's not going to go away any time soon.
At the time of publication, Cramer had no positions in any stocks mentioned in this column.
Jim 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
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