is a buy off Tuesday's market action, which saw stocks tank and bonds rise, Jim Cramer said on
's "Stop Trading!" segment.
Cramer said the big worry in the market, which had the Nasdaq down 3% and the Dow Jones Industrial Average off 2%, is the subprime crisis. Lenders have reported increasing defaults and delinquencies, leading to larger worries about the financial sector.
Cramer said the subprime meltdown and this morning's 9% selloff in China point to a "worldwide slowdown" that will eventually force the Federal Reserve to cut interest rates. "This is the pain before the rate cuts," he said.
Cramer said sentiment is likely to remain sharply negative throughout Tuesday and into Wednesday. But he said safe haven stocks, such as high-yielding defensive names including
Procter & Gamble
, could start to draw some interest Wednesday.
He said the same is true of
Bank of America
, which is 5% below its highs in spite of a huge buyback plan and a strong dividend. Cramer said money is likely to be funneled into companies with buybacks and dividends in coming days.
Cramer said cyclical stocks such as
, having run up sharply in recent weeks, "have a while to go" before they bottom out. But he suggests buying Charter, the debt-heavy St. Louis-based cable operator, into the teeth of the bond market rally, because falling interest rates give the company a chance to refinance and cut its interest costs.
Cramer also likes oil service plays, saying they have a strong long-term outlook.
At the time of publication, Cramer was long Altria and Caterpillar.
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