This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

Jim Cramer's 'Mad Money' Recap: Now Is Not the Time for Panic

Stock quotes in this article: K, PG, Z, ANGI, EBAY, AAPL, F, MTW, NYCB, HAR, SLXP, LAZ, GTLS

Search Jim Cramer's "Mad Money" trading recommendations using our exclusive "Mad Money" Stock Screener.

NEW YORK ( TheStreet) -- Don't panic in the face of this correction, Jim Cramer urged his Mad Money viewers Wednesday. While the markets may still have further to fall, investors need to be ready with their shopping list of stocks to buy when the bottom finally comes.

Cramer explained to viewers exactly what happens during a correction such as the current one. First, the stocks in the primary blast zone get hit. In this market, those are the industrial stocks, the ones that suffer from the weakness in Europe that has now spread to Russia, China and South America. The estimates for these stocks are still too high, Cramer noted, which means their stocks have farther to fall.

Must Read: Warren Buffett's Top 10 Dividend Stocks

Next to be hit are the stocks in the secondary blast zone, which are the consumer packaged goods companies such as Kellogg (K) and Procter & Gamble (PG) . These stocks are usually shielded from economic weakness, but with the dollar so strong they're getting hit by a strong U.S. dollar.

Also in the secondary blast zone are the banks, which need higher interest rates to thrive but won't likely see them anytime soon.

But then there are the stocks receiving collateral damage. Those are the ones that don't deserve to be going lower and can be bought into the weakness. Cramer reiterated that the restaurant and retail stocks are in this group, as are the biotechs and the defense companies.

Cramer said there's no rush to buy this last group because the markets are only 3% from their highs and may have further to fall. However,they will be the first to bounce when the bottom is finally reached.

Executive Decision: Spencer Rascoff

For his "Executive Decision" segment, Cramer sat down with Spencer Rascoff, CEO of Zillow (Z) , the online real estate Web site that's seen its shares rise 36% so far in 2014.

Rascoff commented on the recent news that Rupert Murdoch is buying Move (MOVE) , purveyors of, Zillow's only competing Web site after Zillow snapped up Trulia earlier this year. He said Zillow is still the largest player in the market and remains very focused on real estate agents and brokers, which is why the company continues to gain market share every quarter.

Rascoff noted that when it comes to the Internet, user experience rules. Once you have an audience the advertisers will follow, he said, which is why the Trulia acquisition makes sense. Zillow will operate both brands when the acquisition closes, allowing users to pick the brand that fits them best while advertisers can quickly advertise on both platforms.

Finally, when asked about whether a slowing housing market will hurt Zillow, Rascoff said the continued migration from offline to online in the real estate market will far outweigh any short-term weakness in home prices.

Must Read: Here Are 20 Stocks That Could Buck the Odds and Do Well in October

Cramer remains a fan of Zillow.

1 of 3

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 16,804.71 -238.19 -1.40%
S&P 500 1,946.16 -26.13 -1.32%
NASDAQ 4,422.0850 -71.3050 -1.59%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs