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Cramer: Obama A Major Driver Behind Rally

The force behind recent gains in the markets, Cramer said Tuesday, is none other than President Barack Obama.

Cramer said Obama changed his stripes after Republicans won control of the U.S. House of Representatives and made gains in the Senate during last year's midterm elections. In order to create jobs, Obama began to embrace big business for the first time. Since then, the Dow has climbed 12 percent higher. Wall Street remains cynical of Obama, though, and presumes his new stance on business is only for show. Cramer, on the other hand, said investors should appreciate the new, pro-business Obama.

On Monday, for example, Obama told the U.S. Chamber of Commerce he's willing to be a salesman for big business. Obama said he's willing to help businesses with trade agreements and lower corporate taxes. Specifically, Obama wants to change the corporate tax code, so U.S. companies can profit from the money made overseas. In return, Obama wants businesses to commit to creating jobs.

"You need to know that our exports would be much, much bigger if our trading partners played fair. That's where the President comes in," Cramer explained. "I cannot emphasize enough that these trade deals the President can help cut ... hold the key to multiple years of earnings growth for American companies."

The problem is, U.S. products aren't making it into foreign markets. U.S. trading partners are flooding America with their goods while keeping the USA out of their markets, Cramer explained. As a result, U.S. companies aren't making as much money as they could in foreign markets. With no profits to repatriate at lower tax levels, companies are less able to hire or provide dividend increases. Obama is working to change that, though, and Cramer is optimistic it will happen.

Call Cramer: 1-800-743-CNBC

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