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Jim Cramer: Where to Buy on Cataclysmic Days

Finally, there's a company that hasn't done that well lately because the economy's a little too strong for its business: AutoZone (AZO). The market's convinced that a too-strong economy makes it less likely that we will fix our cars ourselves and more likely that we will just go buy a new one. Meanwhile, AutoZone doesn't care. It just takes that cash and keeps buying and when the economy downshifts, you will be glad they did. In six years the company has literally bought half the shares outstanding. Don't you think it will have a field day as the food fight in Washington continues? I think it will.

Now, yesterday I talked about dividends as a way to protect yourself and I reiterate that those are terrific safety nets. But I think that when we look at the calendar, when we look at where we are in the year and how little time is left, it is reasonable to think that these large institutional buyers are well aware of the patterns I am talking about. They will be fighting with GameStop, Viacom, CBS, Time Warner, AOL, Wyndham Worldwide and AutoZone for every share. Which is why these are natural places to be bidding on cataclysmic days. If the companies weren't worried and bought all through the Great Recession, which was real and lasting, don't you think they will be buying through the debt ceiling debacle, which is phony and not lasting?

Yeah, me too.

Action Alerts PLUS, which Cramer co-manages as a charitable trust, has no positions in the stocks mentioned.

Editor's Note: This article was originally published at 7:24 a.m. EDT on Real Money on Oct. 8.
At the time of publication, Cramer was long ___.

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