RealMoney Radio: Fear and Loathing

If you're a fan of scary movies then the current market might remind you of Amityville Horror, Jim Cramer said on his "RealMoney" radio show Thursday.

Everything in tech is a disaster, and gold is up, which is a sign that people are scared, he said. Cramer said although market players may have the temptation to sell everything they have and get out of the market in this type of environment, this is not the right thing to do.

Eight years ago, when the market was really low, Cramer thought it would be best to get out. But shortly after, the market bottomed and then rallied for two-and-a-half years, he said.

You have to remain cool and calm in this situation, he advised.

On Thursday, a bunch of companies were downgraded, including Wal-Mart (WMT Quote)and Disney (DIS Quote), he said, adding that natural gas drillers were downgraded as well.

If people want some relief, Cramer said they should go to cereal and soup stocks, such as Kellogg (K Quote) Campbell Soup (CPB Quote) and General Mills (GIS Quote).

People need to look for stocks that have been hammered but still represent companies which are fundamentally good, he said.

"Whatever you do, let's not all get out," he said, adding it could be as wrong as it was in 1998.

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