Your Home Is More Than an Asset

Your sweet, cozy home is hardly "traded" in the same manner as the homebuilder and mortgage brokerage stocks you may hold in your portfolio, and the two kinds of investments should barely be part of the same conversation.

No surprise, Cramer has his own opinions on both.

We all know where Cramer stands on housing stocks: During his Aug. 1 Mad Money show he said that "the homebuilders can't sell all the new homes, yet they are continuing to build." Many of these companies, including the public ones, will go under, he predicted.

Mortgage brokers also look to be in the house of pain as a result of the housing glut, he said. Also, hedge funds will lose some of the value in their securities if mortgages are not paid back; this would affect the hedge funds' ability to carry out deals.

"Don't get caught in the housing ripple," he warned. "Try to get out of housing companies." So that includes stocks such as Toll Brothers (TOL) Pulte Homes (PHM) Lennar (LEN) Beazer (BZH) and WCI Communities .

In addition, he said that anything related to mortgages or loans should be sold, because the ripple effects extend pretty far and are pretty ugly.

Quite frankly, I agree. I still believe those stocks have room to fall over the next six months, and I, personally, don't have the stomach for it.