Whatever you do, don't be a hero, Jim Cramer warned his Mad Money viewers Thursday. It's too soon to start putting money to work in the market, Cramer said, and Thursday's selling is likely to spill over into Friday.
After a big January rally, Cramer said stocks were due for a selloff. It's perfectly reasonable to expect a decline like the one we saw. Investors have been bullish on hopes of lower interest rates and a trade deal, he said, but now they have bearish concerns to deal with.
The first concern was the lingering trade war. Thursday we learned there isn't likely to be much progress before more tariffs hit March 1. And Cramer felt President Trump is still playing the long game when it comes to China stealing our technology and using it against us.
The next concern was earnings. While earnings have been great, for the most part, Twitter (TWTR) - Get Report fell 9.8%, taking the rest of the social media stocks with them. Tapestry (TPR) - Get Report put a damper on retail, and Kellogg (K) - Get Report and GrubHub (GRUB) - Get Report also fell substantially.
The third concern for investors was Europe. Weakness in the European economy sends crude tumbling, which in turn takes U.S. stocks with it.
Finally, there's too much bullish sentiment, Cramer said. When everyone is bullish, there's no one left to buy. That's why he urged investors not to put money back to work until we see still lower levels.
Cramer and the AAP team are looking at opportunities for growth in their portfolio. Find out what they're telling their investment club members and get in on the conversation with a free trial subscription to Action Alerts Plus.
Executive Decision: IAC Interactive
For his "Executive Decision" segment, Cramer sat down with Joey Levin, CEO of IAC Interactive (IAC) - Get Report , the online services conglomerate that owns 81% of Match Group (MTCH) - Get Report and 84% of Angie Homeservices (ANGI) - Get Report . Cramer said the value of these two investments alone is $19.7 billion, but IAC has a market cap of less than $18 billion.
Levin agreed with Cramer's assessment of their valuation, adding that IAC has plenty of other online properties in their portfolio, plus $1.7 billion in cash. He said the goal for all of their properties is to one day be publicly traded like Match and Angie, but there's no specific timeline to do so.
Shares of IAC are up 17% so far in 2019, but Levin said he still sees a lot of growth ahead as all of their properties are in huge markets, but still have single-digit penetration. In fact, much of IAC is growing faster than the the big growth stocks like Facebook (FB) - Get Report and Alphabet (GOOGL) - Get Report , he added.
When asked for specifics about some of their properties, like Investopedia, Levin said there is still a great need for financial literacy in America and that site continues to expand. As for Match, Levin said that it's hard to meet people in general these days, which is why Match has grown beyond just a dating service.
Cramer commended Levin for doing a great job. Shares of IAC have more than doubled since Cramer first got behind the stock in 2017.
Chipotle's Back, and Right on Schedule
Cramer said it's been a long road back for Chipotle, which suffered a series of illness-related scares in 2017. But as is typical for such scares, it takes a full 18 months before sales begin to recover. During that time, Chipotle hired Brian Niccols as its CEO. Niccols, formerly of Taco Bell, has been turning the ship around, cutting costs, increasing efficiency and most importantly, winning back loyal customers. Shares have risen from their lows of $250 to over $585 as a result.
Cramer said today's 11.3% rally in Chipotle will not be its last, as the restaurant chain still has a lot more room to grow.
Over on Real Money, Cramer's says people seem to love Chipotle (CMG) - Get Report more than ever. Get more of his insights with a free trial subscription to Real Money.
Executive Decision: Evolus
In his second "Executive Decision" segment, Cramer sat down with David Moatazedi, president and CEO of Evolus (EOLS) - Get Report , a company going head-to-head with Allergan (AGN) - Get Report with a new drug to compete with Botox. Shares of Evolus have soared from $16 to $29 a share after the company received FDA approval on Friday.
Moatazedi said it's an exciting time to be in the aesthetics space. Their drug, Jeuveau, just received approval and is the first new treatment in the category in many years. He said Jeuveau was tested against Botox and the company will be releasing the results of their most recent studies soon.
When asked how they can compete against Botox, which is a household name, Moatazedi explained they built their brand specifically around millennials. Jeuveau does not have any medical uses, only aesthetics, which affords them more freedom in how they market themselves and how they grow.
Turning to the topic of the company's largest shareholder, who still owns 56% of the company, Moatazedi said he expects that shareholder will continue to wind down their position as Evolus moves from research to commercialization, but as of now, there are no plans for a secondary offering of stock.
Cramer said Evolus is an interesting story, but investors need to be careful after the stock's big run.
Am I Diversified?
In the "Am I Diversified" segment, Cramer spoke with callers and responded to tweets sent via Twitter to @JimCramer to see if investors' portfolios have what it takes for today's markets.
Cramer said this portfolio was properly diversified.
The second portfolio's top holdings included Amazon (AMZN) - Get Report , Boeing (BA) - Get Report , UnitedHealth Group (UNH) - Get Report , Intuitive Surgical (ISRG) - Get Report and Salesforce.com (CRM) - Get Report .
Cramer said he'd bless this portfolio as well, even though UnitedHealth and Intuitive Surgical are both in the healthcare space.
Cramer determined this portfolio was also perfectly diversified.
In the Lightning Round, Cramer was bullish on Box (BOX) - Get Report , Cummins (CMI) - Get Report , Verizon (VZ) - Get Report , Morgan Stanley (MS) - Get Report , Principal Financial Group (PFG) - Get Report and Johnson & Johnson (JNJ) - Get Report .
Search Jim Cramer's "Mad Money" trading recommendations using our exclusive "Mad Money" Stock Screener.
To watch replays of Cramer's video segments, visit the Mad Money page on CNBC.
To sign up for Jim Cramer's free Booyah! newsletter with all of his latest articles and videos please click here.
Watch All Jim Cramer NYSE Replays Below
At the time of publication, Cramer's Action Alerts PLUS had a position in FB, GOOGL, JNJ, CVS, CSCO, AMZN, UNH, CRM, AAPL.