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Have bulls misjudged the GOP?

Jim Cramer at the Mad Money MM2K show.
Adam Jeffery | CNBC
Jim Cramer at the Mad Money MM2K show.

With both the Dow Jones and S&P 500 closing in positive territory on Tuesday it would appear the market is willing to shrug off the government shutdown.

Cramer believes that's because, according to conventional wisdom, the Republican party is the party of business. "The GOP is thought to stand for whatever is good for sales and profits," Cramer said.

Therefore, pros are buying stocks believing that the GOP will ultimately put the needs of their constituents, Corporate America, ahead of their own niche agendas.




Cramer, however, doesn't think that's going to happen.

Now that's not to say that Cramer is looking to get political, he's not. The Mad Money host is only looking at developments through the lens of an investor trying to maximize profits.

And Cramer has made an observation that he thinks could impact stocks.

That is, "it seems that Republicans are splitting into two parties, one part that's pro-business and another that doesn't respect the primacy of the federal government itself."

That development may be critical if you're an investor.

That is, Cramer thinks there's a faction of the Republican party that's so committed to repealing Obamacare that they won't compromise at all. Instead they will insist on the addendum or refuse to pass budget legislation.

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"The bulls today are betting that there are enough of the old "pro-capital" Republicans to stop the new Republicans," Cramer explained. "All I can say is those bulls may be wrong. I think bulls have misjudged the GOP."

Looking at how that impacts markets, Cramer added "If I am right about the GOP transformation, then we haven't hit bottom yet. I believe better buying opportunities await. I'd hold out for them.

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