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NEW YORK (
) -- Investors can afford to take some short-term pain in order to make longer-term gains, Jim Cramer told
Don't leave the stock market just because of a few down days. "Sometimes the markets need to come down," Cramer explained, but that doesn't mean there aren't ways to make money.
Case in point,
, a stock Cramer owns for his charitable trust,
Action Alerts PLUS
, and that has fallen 5% on what's been widely reported as a "disappointing" quarter. Cramer said Apple is a special situation that must be owned ahead of what will truly be a strong second half of the year.
Cramer also made the case for high-yielding dividend stocks. He said these stocks yield far more than U.S. Treasuries. While they may lose a little of their value in the short term, they won't lose a lot thanks to their yields.
Kinder Morgan Energy Partners
in the oil patch are all terrific examples, he said.
Other high-yielders include
Johnson & Johnson
in the drug sector, tobacco giant
and phone companies
Cramer also recommended consumer staple stocks
H. J. Heinz
, along with utilities such as
In the natural gas arena, Cramer said U.S. drillers have finally curbed supply, adding "that's what a bottom looks like." As demand builds, the natural gas stocks can only head higher.
Cramer admitted that now is a "defensive moment" in the markets, one when investors may not make many gains until the latest European news can be digested. But that doesn't mean investors need to sit still and it certainly doesn't mean they can't lose a lot less than the other guys.
Off the Charts
In the "Off The Charts" segment, Cramer went head to head with colleague Tim Collins over the chart of
(MON - Get Report)
, the seed and fertilizer giant most poised to benefit from the record-setting drought in the U.S.
While shares of Monsanto are sitting just off their 52-week highs, Collins said the daily chart displays a wedge formation that is bullish for the stock. He felt any pullback should be bought aggressively as the stock has solid support at the $81 level.