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NEW YORK ( TheStreet) -- Rumor has it the stock market is now being driven completely by rumors. At least that's what Jim Cramer heard on the Street Tuesday, he told "Mad Money" viewers. Whether it's a Spanish bailout, European deposit insurance or air strikes against Iran, if there's a rumor about it, the markets are likely trading on it.
But Cramer called "rumor investing" totally useless, adding that it's no way for anyone to invest their money. Why? Because the truth is that no one really knows anything until it actually happens and even when it does, there's still a good chance those events won't be directly affecting the stocks in your portfolio.That's why Cramer continues to recommend sticking with stocks that don't have anything to do with Europe, stocks like American food companies, a la B&G Foods (BGS) or Dr Pepper Snapple (DPS), or domestic tobacco players like Altria (MO). Cramer also recommended domestic housing stocks including Lumber Liquidators (LL) and paint-maker Sherwin-Williams (SHW) as safe bets with no European exposure. There is also the biotech sector, names like Arena Pharmaceuticals (ARNA) and Seattle Genetics (SGEN), both of which will continue the fight against life-threatening diseases no matter what the economies in Europe are up to. Not everything is part of the European debacle, Cramer reminded viewers. "The sooner you realize that, the more money you'll make."