NEW YORK (TheStreet) -- Just before Jim Cramer's "Stop Trading!" segment on CNBC Tuesday, the German government revealed its intention to ban the naked short-selling of stocks and government bonds at the country's ten main financial institutions.
"This sort of thing smacks of panic," Cramer said. "They think there's a Lehman out there."
Cramer said he wished that governments, including the German government, would remain cool and collected. "I feel like I'm being made nervous by governments around the world," he said.
Cramer urged investors to be "a little protective, a little cautious." In an environment characterized by fear, he advised investors to seek out stocks that are high dividend yielders. "Cash, gold and some conviction" will also help investors ride out the rough patches, he said.
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Turning his attention to energy, Cramer declared crude oil a buy, noting that prices have come down significantly and "there's real demand for it." There's a shortage of crude longer-term, he said, adding, "High-yielding
oil stocks are good."
He also recommended a few bank stocks, including
Bank of Montreal
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, despite its great book value, "is too hot to handle," Cramer said. "There are too many parts."
Cramer advised staying away from health care stocks. "This group has gone horribly," he said. The exception was
. "It's the only green name" in the group, he said.
-- Reported by Andrea Tse in New York
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