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NEW YORK (
TheStreet) -- It's never too late to be more diversified, Jim Cramer told his
"Mad Money" TV show viewers Wednesday as the markets seemed to turn on a dime, liking the stocks it previously hated while falling head over heels for the laggards it eschewed just a few days ago.
Cramer said the parts of the three-legged stool of the U.S., Europe and China are all showing signs of weakness. While he doesn't think we're headed towards another global recession, the weakness is causing investors to think twice about which stocks they own.
That's why the red-hot oil stocks have cooled and why some technology stocks such as
Altera(ALTR) have been offering up disappointments. Earnings from
Caterpillar(CAT) were a disaster, noted Cramer, but that doesn't mean there aren't stocks that are working.
With commodity prices falling, companies that use commodities are coming back into favor. That means packaged goods companies such as
Hain Celestial(HAIN) are good bets, along with secular growth names like
Apple(AAPL), a stock Cramer owns for his charitable trust,
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Boeing(BA) still has a good story to tell, said Cramer, as do the utilities
American Electric Power(AEP) and
Investors with diversified portfolios that include some of these names may not have even noticed the shift in the market's sentiment but those who have only been following the hot money got a rude wake-up call in today's trading, Cramer concluded.
Executive Decision: Mark McLaughlin
In the "Executive Decision" segment, Cramer spoke with Mark McLaughlin, chairman, president and CEO of
Palo Alto Networks(PANW - Get Report), the network security firm that roared into the markets last July with an IPO that rose 26% on its first day of trading.
McLaughlin said Palo Alto continues to deliver a next-generation security platform for enterprise networks that protects companies all the way down to the individual application level, something that no other company can provide. He said that applications are the new preferred way for bad guys to access corporate networks, which is why their technology is so crucial.