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NEW YORK (
TheStreet) -- A lot has gone wrong over the past 36 hours, Jim Cramer admitted to
"Mad Money" viewers Tuesday after another down day on Wall Street.
Unfortunately, the market doesn't yet reflect all of that bad news, so be prepared for more selling to come.
There was nothing to like about today's market, which is why the selling is likely not over. Cramer said investors don't know what's going to happen regarding Syria, so they assume the worst and sell on that worry. A conflict in Syria means higher oil prices for an already strapped U.S. consumer.
Then there are fears over the U.S. debt ceiling debate. Over the past few years, the market has learned that when the debates heat up in Washington, it's time to start selling on Wall Street. Washington causes nothing but damage to the markets, noted Cramer, but that should be nothing new to savvy investors.
Finally, the markets are fretting over the talk of a new
Federal Reserve chairman, which only adds more uncertainty to an already uncertain market. All of these factors mean the economy will be slowing, which means stocks need to head lower, he said.
Given all that has gone wrong and those things that likely will go wrong, Cramer expects another 3% to 4% selloff in the markets, after which investors should consider buying defensive stocks like domestic oils and
Bristol-Myers Squibb(BMY). He said investors need to avoid the bank stocks.
Executive Decision: Kevin Reddy
In the "Executive Decision" segment, Cramer spoke with Kevin Reddy, chairman and CEO of
Noodles & Company(NDLS - Get Report), the restaurant initial public offering that's up over 100% since it debuted earlier this year. During the company's first public conference call, Noodles posted an earnings beat of 6 cents a share on an 18% rise in revenue and a 4.4% pop in same-store sales.
Reddy said that while Noodles has only 350 stores, the company can easily open 2,500 in the U.S. alone. He said his company has a disciplined growth strategy, however, and will expand slowly and carefully. One positive note for Noodles has been the growth in its mature markets.