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From Watergate to WW II: Jim Cramer puts the history of politics and stocks on the table

Looking back in history, politics has been rich with events that rocked both the world and the stock market. For Jim Cramer, they all represented a buying opportunity.

Some events were even the investment of a lifetime for him.

"They are reminders that when the nation faced systematic economic collapse, political insurrection, instability at the White House and military defeat at the hands of axis powers — there were opportunities to make money," the "Mad Money" host said.

The secret to Cramer's sauce? At each crucial point, he figured out where the bull market was, in both stocks and bonds. The only exception was in 2008 when he pounded the table for investors to get into cash. He told them to buy it all back when the market bottomed in 2009.





Richard Nixon speaking during his presidential campaign, 1968.
Declan Haun | Chicago History Museum | Getty Images
Richard Nixon speaking during his presidential campaign, 1968.
"We don't have systematic risk with this election. I just don't see it under either candidate." -Jim Cramer

"We don't have systematic risk with this election. I just don't see it under either candidate. But if we do, we will deal with it," Cramer said.

During World War II, Germany invaded France in May of 1940 and it was clear that the French would fall immediately. The Dow Jones Industrial average sat at 147 at that time, and fell to 92 when investors recognized that the U.S. would suffer its worst military defeat — the loss of the Philippines — while the Nazis were routing the Russians in a great spring offensive.

That was a great buying opportunity, Cramer said. Once the U.S. realized it would win the war, a year before it ended, the Dow was back at 145.

Watergate is also widely regarded as one of the worst Presidential crises of the 20th century. The Dow plummeted to 773 when President Nixon resigned in August of 1974, from 989 points in June of 1973. It ultimately landed at 576 in the first seven months that President Ford took over, but then it bounced back sharply.

That was also a buying opportunity, Cramer said.

While the election this year has spawned anger and spite, it's not as dire as circumstances of the past were.

"Whatever happens tonight … We will find things to buy and sell if the House and Senate go Democratic. We will find things to buy and sell if Donald Trump wins the White House, or if Hillary wins and Trump tries to contest the election," Cramer said.

Either way, the stock market will not stop, and Cramer will be there to find the bull market for investors.

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