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Cramer: Stock Market Surge Ahead?

Wednesday, 16 Jan 2013 | 6:01 PM ET
Washington Fright Fest Almost Over?
Mad Money host Jim Cramer weighs in on the debt ceiling fight in Washington, and what it means for stocks.

Now that you've survived the worst stock market since the Great Depression, are you about enjoy the best?

Jim Cramer thinks it's entirely possible.

"Remember, the most important spur of investment is confidence," said the Mad Money host.

Cramer believes that 3 major factors have thwarted confidence and by proxy the stock market for quite some time: the uncertainty of the presidential election, the uncertainty of the fiscal cliff, and the uncertainty of the debt ceiling.


"We've gotten past two of those," said Cramer. "There's only one more to go. And it isn't nearly as scary or as meaningful as the other two."

Cramer believes that investors have learned their lesson when it comes to these highly anticipated political events. Take them with a grain of salt.

Essentially, Cramer believes politicians aren't willing to sacrifice re-election to advance their principles – if those principles could backfire on them.

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Viorika Prikhodko | E+ | Getty Images

"And you are not going to win an election if you're responsible for stopping even a week's worth of Social Security checks," Cramer said. "No politician will want to be identified as the person that stopped the government from paying its bills for any length of time."

The American people won't stand for it – they'll be kicked out of office.

Therefore, at the 11th hour, Cramer thinks it's relatively safe to assume lawmakers will achieve some kind of compromise.

"And once we finish the third leg of this political steeplechase, we will have a degree of certainty that we haven't had in ages. That could usher in an age of investing nirvana," said Cramer.

As a result Cramer thinks investors need to position now, "because once the big bad event is in the rear-view mirror, risk averse money will probably flood the market."

"I believe the Washington fright-fest is almost over," said Cramer. "And very soon politics should cease to be the biggest catalyst looming over the market."

That is, very soon fundamentals will drive the market. And, when fundamentals matter most - well, Cramer doesn't think you want to stand in front of that train.

Call Cramer: 1-800-743-CNBC

Questions for Cramer? madmoney@cnbc.com

Questions, comments, suggestions for the "Mad Money" website? madcap@cnbc.com

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