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NEW YORK (TheStreet) -- Washington is back on the front page, and that's never good news for stocks, Jim Cramer said on Mad Money Wednesday, as the markets faltered on a surprise win for the Tea Party. Cramer's advice? Stay the course.
Cramer admitted that nothing turns buyers into sellers faster than wrangling in Washington. Whether its unemployment benefits, the budget, the debt ceiling, the deficit or corporate taxes, if Washington is involved uncertainty is soon to follow.
But Cramer said he's not worries about the Eric Cantor news as it just signals there's likely more gridlock to come. That gridlock might now be coming from the Tea Party rather than the mainstream Republicans but in the end gridlock is gridlock.
Cramer said market deserved a breather, a chance for investors to take profits. The weakness also provides the perfect opportunity to put money to work in the sectors that are working, like aerospace and oil and gas. He said the weakness won't likely be over in a day, so investors should begin picking at the stocks they like starting tomorrow.
The Great Recession changed the mindset of the market for many on Wall Street, Cramer told viewers, and nowhere is that more evident than in Micron Technology (MU), a stock that shot up 5% in today's session as an analyst upgraded the stock from sell all the way to buy.
Cramer said that for years Micron followed a predictable cycle. Demand for memory chips would increase and so, too, would Micron's shares. Then a competitor, of which there were many, would increase supply with a new factory and shares would plummet. But that cycle ended during the Great Recession, when everyone was told that PCs were in decline and would likely never return to their former glory.
What was lost to analysts, however, was Micron's reaction to the sad state of the PC -- it made smart acquisitions, thereby elimination competition, while other competitors ramped down their production or left the segment altogether.