This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Cramer's 'Mad Money' Recap: Survival Guide (Final)

Search Jim Cramer's Mad Money trading recommendations using our exclusive Mad Money Stock Screener and watch Jim Cramer's Mad Money Post Game video exclusively on

NEW YORK ( TheStreet) -- "The best thing you can say about this market is that we weren't down more," a solemn Jim Cramer told the viewers of his "Mad Money" TV show Monday, after a 635-point slide in the Dow Jones Industrial Average.

He said the downgrade of U.S. debt was like hitting the markets with a big stick, but the day's trading action was curious, to say the least.

Cramer concluded that today's market action was akin to a slow-motion flash crash, one where the machines, not men, were at the helm. How did he reach that conclusion? Cramer said it's because the market acknowledged no positives and instead took everything lower, which is not rational investing. "When everything gets crushed, that's machines, not man," he concluded.

Cramer noted that utilities should have been up today, with energy prices falling off a cliff, but they weren't. Consumer products companies, the safety stocks of the markets, should have been up today as well, but they weren't either. Gold stocks should've seen gains, he said, but there again was nothing but red ink.

Take the case of Johnson & Johnson (JNJ). Cramer said this company was down 2.5% today, yet the company yields 3.7%, which is far better than the 2.25% from a 10-year Treasury bond.

Despite the company's recent slew of over-the-counter drug recalls, Cramer said he'd be a buyer of J&J once its yield hits 4%. The company trades at just 12 times earnings with a 5% growth rate.

Cramer also looked into Eaton (ETN), a stock he's liked for a long time. He said that Eaton also has a big yield, but unlike J&J, Eaton's earnings fell off a cliff in the recession of 2009, something the stock is getting punished for now. Cramer said he'd wait for a 4%-to-5% yield in Eaton as a cushion to make up for the more unpredictable earnings.

"Things aren't as bad as 2008," Cramer reiterated to viewers, but that doesn't mean we can't immunize ourselves from risk by waiting for even lower prices, even in companies that are safer than U.S. government bonds.

1 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
CNH $0.00 0.00%
BAC $15.56 0.00%
EOG $97.23 0.00%
GG $19.81 0.00%
GLW $22.46 0.00%


DOW 17,826.30 -279.47 -1.54%
S&P 500 2,081.18 -23.81 -1.13%
NASDAQ 4,931.8150 -75.9760 -1.52%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs