Cramer: Trading Gordon Brown’s Resignation

Britain may be “a very important player in the world,” Cramer said during Tuesday’s Stop Trading!, but he’s not recommending any trades on the new change in political power in that country.

The resignation of Prime Minister and Labour Party member Gordon Brown, who will be replaced by Conservative Party leader David Cameron, doesn’t alter Cramer’s outlook on that country or the European Union. With so much volatility there, he said, “that I want to steer clear of buying anything in Europe, including anything in the UK, because I still believe that the shorts want to take those stocks down.”

Cramer recommended that investors focus instead on the US, whose economy and businesses are recovering. There’s no political indecision here, as there is in Britain right now, he said, and the quagmire that was health-care reform is in the past.

The “United States is where you want to invest,” Cramer said. “I think that people in Britain feel that way, and I think people on the Continent feel that way.”

But neither Europe’s problems, nor China’s much talked about overheated market, should hurt the US recovery. Cramer thinks the International Monetary Fund will “make some real changes” in the EU, and he was confident that the Chinese would cool down their economy. He said he saw “a lot of things” that proved Monday’s rally was not short covering, and that the removal of Europe’s debt contagion should mean we’ll “begin to see some good opportunities here in American growth stocks.”

“And that’s where I want to be,” Cramer said, adding that he likes dividend plays as well.

Cramer also told viewers that the rise in gold prices “is not bad here.” Investors want to see economic growth, and rising prices offer “a whiff of inflation against the deflation we were seeing in Europe.” And considering that “deflation is going to be the enemy of profits,” Cramer said, “I think we need to see a little inflation.”

Cramer’s big takeaway was that investors should take this “opportunity” to buy stocks lower on the dip.

“That’s all I want to do,” he said. “I don’t want to buy high.”

Call Cramer: 1-800-743-CNBC

Questions for Cramer?

Questions, comments, suggestions for the Mad Money website?