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Jim Cramer's 'Mad Money' Recap: More Pain, Less Gain

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NEW YORK (TheStreet) -- Can investors afford to go against the grain in the this volatile stock market? Jim Cramer asked on Mad Money Thursday. His answer? Don't expect big gains before first feeling a lot more pain.

Cramer said the industrials are the perfect example of his thesis. The industrials were soaring along earlier this year under the premise that the world was returning to normal and any chance of a recession was long behind us. But in recent weeks and months that thesis changed as earnings turned negative, China appeared to stall and now Europe could easily slip back into recession thanks to Russian sanctions.

Should investors take the contrarian view and buy into this weakness? Cramer said the selling in this group has only just begun because the analysts have yet to throw in the towel and lower their estimates. He wouldn't be a buyer until that happens.

The same applies to the oil companies, which should be going up amid global tensions. Instead, oil has been heading lower as the U.S. dollar strengthens. This trend is not your friend, Cramer noted.

Whether its the industrials, the oils or the airlines, just about every sector has negatives that have yet to play out, Cramer concluded. Until the analysts can't take the pressure and begin their downgrades, Cramer said he would continue to sit on the sidelines.

Executive Decision: Tim Taft

For his "Executive Decision" segment, Cramer sat down with Tim Taft, president and CEO of Fiesta Restaurant Group (FRGI - Get Report), the Mexican restaurant chain that just posted a penny-a-share earnings beat on a 6.7% rise in same-store revenue. Shares of Fiesta are up 5% since Cramer first mentioned the stock on July 16.

Taft called his company a "well-kept secret" to many investors. That will change over time as Fiesta continues to grow and put up great numbers every quarter.

Taft noted that some of the Miami restaurants are serving 500 cars a day through their drive-thru windows alone. Thanks to eliminating cumbersome products from their menus, their kitchens continue to streamline their operations.

When asked about the growing trend towards Mexican food, Taft said Hispanics continue to be be fastest-growing demographic in America. Beyond that, there are lots of strong regional players that are all attracting customers of all ethnic groups.

Taft said he's confident Fiesta Group will eventually become a national player, but for the time being, it is  proving it can expand outside of its home turf of Florida and is currently doing so in Texas.

Cramer called Fiesta Restaurant Group a very exciting story.

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