Jim Cramer: Put Europe Back on Your Radar

So what happens next? We know the multinationals will take hits again, as will the financials, such as JPMorgan (JPM) and Morgan Stanley (MS), that are tied into Europe. That's what happened before, and it is happening again. But because the statements Draghi issued were so frightful, we know that the whole market has to come down first. Today we are seeing the old Standard & Poor's 500 indiscriminate knockdown of companies that do business in Europe and companies that are 100% domestic.

Perhaps the best thing to do right now is to default to what happened in the tail end of the crisis, when the U.S. stock market was able to distinguish our domestic economy from Europe's domestic economy. That means the housing plays, including the retailers, would be places to go, as well as domestic health care companies that are also pulling back.

I am advocating that after being able to avert our eyes for some time, we now have to keep one eye on Europe again, while the other eye can be on domestic opportunities. You simply can't be as aggressive now as you might have been in January, given the run we have had and the ongoing ineptitude of the European financial and political leaders, who always seem to find a way to screw things up.

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