360 Degrees on China's Selloff

Editor's note: In this edition of "360 Degrees," Jim Cramer, Rev Shark, James Altucher, Barry Ritholtz and David Merkel weigh in on what the Shanghai Shenzhen Composite's overnight drop means to U.S. investors. Catch the latest insights on this developing situation in Columnist Conversation.

TheStreet.com has always believed that offering a wide variety of opinions and viewpoints -- rather than a monolithic "house view" -- helps readers make better-informed investment decisions. In that spirit, we bring you "360 Degrees," a feature that takes advantage of our varied stable of RealMoney contributors, who offer analysis of stocks and the markets from all angles.

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Wait Out the Market's Panic Over China
By Jim Cramer
5/30/2007 8:29 a.m. EDT

OK, let's do some first-class panicking off the Shanghai Shenzhen Comp's drop:

Let's crush the brokers; they are levered to China, aren't they? Got to sell the mineral stocks -- don't they get killed if the Chinese stock market goes down? Remember how all the infrastructure stocks got crushed after the last China decline? Have to sell them before everyone else does!

Why not sell the banks, too? They have to be related. Oil, too, because China can't use as much oil if the stock market slows down.

Ah, panic. How great is panic? It is the panacea for all that ails you. It makes you feel so good after you jettison all of those stocks.

Yes, the sweet smell of panic is in the air, and panicking can only be the right thing to do, right?

Yeah, I am being facetious. But you know it will happen.

If you think you can get out at last night's prices, be my guest. Always terrific.

But I believe you have to think about tomorrow's prices. What I would say to do is wait, just wait. Wait it out, buyers and sellers. There will be a better price to sell coming.

Yet, there might not be a better price to buy.

Random musings: Last time around, the first stocks that bottomed were the Cokes(KO Quote) and the AT&Ts(T Quote). With this buyback, IBM(IBM Quote) is also a place to go, but only if it opens relatively unchanged. Keep an eye out for those to see if they slow their decline faster than others.

At the time of publication, Cramer had no positions in any of the stocks mentioned in this post.

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