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NEW YORK (TheStreet) -- "Yeah, it's bad out there," Jim Cramer admitted to his Mad Money viewers Tuesday. "And maybe the markets head lower from here." But the markets might also rebound, just as they did the last time.
To illustrate his point, Cramer held up a copy of The Wall Street Journal dated Oct.14, 2011, with the headline Market Nears Bear Territory. Back then the markets had fallen 17% from their April highs on fears that European countries such as Spain were plunging the world into recession and were close to default. Sound familiar?
Cramer noted that the Dow Jones Industrial Average opened at 10,655 the morning that paper hit newsstands. But despite the doom and gloom conveyed in just about every article, 10,655 was the lowest the Dow would see. Oct. 4 was the market bottom.
Back then, no one was predicting a bottom, Cramer noted, only adding to the fear and panic -- just as they are today. But today it looks like the U.S. dollar may have peaked and the U.S. economy is strong. As we learned those years ago, the U.S. isn't completely beholden to events overseas. We might, just might, be able to bounce from these lows and head higher.
Cramer's Shopping List
It's time to get your shopping list of stocks ready, Cramer told viewers, because unlike your fantasy football draft, you get to pick up your favorite stocks anytime the price is right.
Cramer said it's important to remember that stocks are pieces of paper tied to the fortunes of individual companies, and not to the fortunes of China or Brazil. That means when the markets put them on sale, real opportunities are being created.
Case in point: Celgene (CELG), a stock that was trading at $139 a share six weeks ago, but is a totally different story today, trading at a scant $115. Celgene previously tested lows at $113, and at that level would be trading at just 15 times 2017 earnings. That's a bargain.
Then there's Facebook (FB), a stock Cramer owns for his charitable trust, Action Alerts PLUS. Facebook traded as low as $83 last week, and is valued at 21 times 2017 earnings. If that seems pricey for you, Cramer said the markets will probably knock it down to be even cheaper in the days to come.
There's no hurry in this market, Cramer concluded. Once you have your shopping list ready, wait for the price to fall to where you want it using limit orders.