Cramer's 'Mad Money' Recap: Converging on the Emerging

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"I'm here to tell you what happened to these emerging-market stocks, what I think is going happen and how you can make some money," Jim Cramer told "Mad Money" viewers Wednesday.

"It's because I think opportunity could be knocking."

He reminded viewers that emerging-market stocks have been "a house of pain" for the past three weeks while investors sold off holdings in emerging-market economies.

It used to be that when America catches a cold, the developing world got pneumonia, Cramer explained. That means when the Federal Reserve increased interest rates in the U.S., the developing world would get crushed economically.

But Cramer doesn't believe that is as true anymore.

"The big fear is that the Fed will destroy all your Third World stocks," he said.

Some investors think the Fed rate increases are a prelude to a repeat of the emerging-market "massacres" seen in 1994, 1997 and 1998.

"Traders think that because the Fed raised rates then, and the Fed is raising rates now, that must be the cause of the softness in emerging-market stocks," Cramer said.

Cramer acknowledges that there is a correlation, but it's not the cause of the current softness. "The market is drawing the wrong conclusion," he said. "The conditions that existed then don't exist now."

He explained to viewers that the economic fundamentals in BRIC (Brazil, Russia, India and China) are good.

"The bottom line is that emerging markets aren't just safe, they're cheap," he said. "They will bounce back because they have some of the best stories out there."

Cramer then outlined the following top five stock picks for emerging-market investors:

Tele Norte(TNE Quote) because of its 5% dividend and the $1.3 billion special dividend the company is planning.