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NEW YORK (TheStreet) -- This, too, shall pass, Jim Cramer said on Mad Money Thursday after a big down day on Wall Street. But the questions remain: When will it pass and how low will the markets be when it does?
Cramer admitted that there's not much to like in the markets just yet because the best stocks still aren't down low enough to be attractive. Patience will be rewarded, he continued, as he offered viewers a peek into his thought process before buying for his charitable trust, Action Alerts PLUS.
Read More: 8 Stocks George Soros Is Buying in 2014Cramer said he's looking for stocks that are down -- not down just a little, but stocks that are really down. The industrials fit that criteria, down 10%, he noted, but many of them have exposure to Russia and Europe, making them risky. One of the stocks that could be hurt most by Russia, however, is Germany's BASF, and that would be good news for the U.S.-based Dow Chemical (DOW). Cramer said Dow offers shareholders a 3% yield and has an activist investor to boot, which is why he's a buyer of Dow. What about the financials or technology? Cramer said the financials need higher interest rates so they're off the buy list, and many of the tech stocks, like Microsoft (MSFT), just aren't down enough to be attractive. Many food and drug stocks are also off the list after both Kellogg (K) and Kraft Foods (KRFT) reported horrible earnings. Cramer said the oil stocks may be hurt by downgrades with oil prices plummeting; meanwhile, the restaurant and retail names have just become too dangerous to own at the moment. Read More: Economic Growth Is Increasing but Don't Expect Stocks to Ride With It There are the conservative stocks, like Walt Disney (DIS), Cramer concluded, but even Disney is not down enough to be attractive. That leaves only Dow Chemical, which is why that's the only stock Cramer was buying for Action Alerts PLUS so far.