NEW YORK (TheStreet) -- Jim Cramer, on his Tuesday Stop Trading! segment on CNBC, says that we must "accept the fact this market is too high" and could go lower.
In light of this, Cramer suggested that investors look at rail stocks: "they're all doing very well and they're very inexpensive."
and ... the rails are seeing strong demand," Cramer said. Other cheap rail stocks that Cramer mentioned include
Cramer cautioned that
have been holding up "artificially" well due to closed-end fund activity, but nevertheless recommended them for their yields. They're "great" vs. the ten-year, Cramer explained.
During the segment, Cramer warned that slow and painful is the "new American World."
"We have radical deflation in this country," he said.
He added that congressmen -- who have said that if their financial bills aren't passed, there could be negative implications for the stock market -- are really the ones who are creating problems in the market: "They're the problem.... Washington has decided to eviscerate profits."
Furthermore, Cramer said that while he "loves" the police, teachers and firefighters, "we also need to help the manufacturing and industrial" sectors. "We can't keep throwing money at the unions," he said.
Cramer's Stop Trading!: GM, Tesla IPO
-- Reported by Andrea Tse in New York
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