NEW YORK (TheStreet) -- "Don't sell the best assets out there just because some of the worst assets are heading lower," Jim Cramer told the viewers of his "Mad Money" TV show Thursday as he urged investors to not sell their stocks on fears of a U.S. debt downgrade.
Cramer said such a downgrade won't be Armageddon for stocks, and the missed opportunities might be a whole lot more painful.According to Cramer, a U.S. debt downgrade will cause investors to sell U.S. bonds and thereby raise interest rates, and it will likely send the U.S. dollar lower. He said it will also wreak havoc on the bank stocks, which are already the worst performing sector. But beyond that, he said, stocks will largely be unaffected. He said it "doesn't make sense to sell stocks of companies that have great balance sheets just because our government has a terrible one." Cramer said selling stocks like Google (GOOG) would have cost investors 50 points today as the Internet search giant reported stellar earnings. Selling stocks like Sanofi-Aventis (SNY) , a stock which Cramer owns for his charitable trust, Action Alerts PLUS, also makes no sense. Sanofi yields 4.5%, far better than any dividend, and its earnings are not affected by the U.S. debt crisis, said Cramer. Cramer also noted that Conoco Phillips (COP) announcement that it's breaking itself into two in order to unlock value is another opportunity investors would have missed had they sold their stocks. Even without the breakup, he said, Conoco still yields 3.6%, also better than treasuries. Cramer said the markets might be choppy until a debt ceiling deal is reached, but the opportunities are just to great to miss.
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