No one ever made a dime panicking, Jim Cramer reminded his Mad Money viewers Monday after all of the major averages melted down on the escalation of trade tensions between the U.S. and China. Cramer told viewers that stocks become cheaper as they go lower, so investors just need to be patient and cautious until the selling subsides.

Monday, the selling volume surpassed buying volume buy a 10-to-1 ratio, and that would normally be a bullish sign, Cramer told viewers. But he has five reasons why, he said, investors need to wait before picking among the rubble of today's decline.

First, we have yet to see any major analyst downgrades. Estimates will need to be cut as globe trade slows and that fact has yet to be baked into most analysts' forecasts. Second, violence continues in Hong Kong. The Chinese can't afford to look weak, Cramer said, and they will have to act eventually.

Third, President Trump's rhetoric against China is bound to surface again, and when it does, the markets are likely to accelerate their selling.

The U.S. Treasury on Monday designated China as a currency manipulator.

Fourth, Cramer said, the Chinese appear to be misreading the American political system, hoping to wait out Trump so they can negotiate with a Democrat instead. But much of the Democratic front runners would be tougher on trade than Trump, making this strategy misguided. Finally, Cramer noted that the technical analysis indicates that stocks still aren't in oversold territory, meaning there's more room for them to fall.

Don't forget: earnings have been quite good this earnings season and the markets did just receive an interest rate cut from the Federal Reserve. That means there will be a time to buy, but it might not be tomorrow and it certainly won't be at the opening bell.

Cramer and the AAP team are looking for the best time to add to their portfolio names, including Burlington Stores (BURL) and PepsiCo (PEP) . 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.

Where to Shop 

With trade tensions escalating, there are some sectors that simply cannot be bought, Cramer told viewers. Industrial companies with overseas exposure will certainly feel the pain of tariffs, as will retailers who import too many things from China. The tech stocks have been found guilty until proven innocent as of late, and the bank stocks get clobbered even though they shouldn't.

Cramer added that the drug stocks don't offer a dividend yield big enough to protect them from the selling. Meanwhile the fossil fuels are too cyclical and also can't be bought in this environment.

So what's left to buy? Cramer said investors need to hold tight right now, but when the time comes, the utilities can be bought. He recommended Dominion Energy (D) and AT&T (T) , among others. Domestic restaurants like Chipotle Mexican Grill (CMG) are also intriguing.

Cramer also recommended financial technology stocks, defense players like L3 Harris (LHX) and of course gold, with Barrick Gold (GOLD) and Agnico-Eagle Mines (AEM) remaining his favorites in that group.

On Real Money, Cramer takes a closer look at the signs that seem to say we've reached a point where you should look for things to buy. Get more of his insights with a free trial subscription to Real Money.

Viewers Have Questions

After a rough day in the markets, Cramer took calls from viewers to answer their most pressing questions. He told the first caller that he still likes Square (SQ) and would buy more under $55 a share.

When asked about Ford (F) , Cramer said he's not recommending any auto stocks right now. Ford has not delivered on their promises.

Investors looking for a utility should consider Dominion or Duke Energy (DUK) over Excelon (EXC) , Cramer told the third caller.

Cramer was not a fan of Luckin Coffee (LK) , which is expanding way too rapidly, but he remained a fan of Tellurian (TELL) . He warned that JD.com (JD) is very risky in the middle of a trade war. He preferred Bristol-Myers Squibb (BMY) over Gilead Sciences (GILD) .

Executive Decision: Aphria

For his "Executive Decision" segment, Cramer sat down with Irwin Simon, the chairman and interim CEO at Aphria (APHA) , a Canadian-based marijuana producer.

Simon said that Aphria is one of the largest cannabis producers in Canada, employing over 1,100 people. The company currently does no business in the U.S. and is still solely focused on the medical and recreational markets in Canada.

Cannabis is big business, Simon noted, and Aphria has 550,000 plants growing in multiple facilities that employ the latest in robotic processing.

When asked why he made the jump from 25 years in the food business to cannabis, Simon explained that he looked explored the many applications of cannabis while still at Hain Celestial (HAIN)  , and with so many uses from recreational to medical, food, drinks and supplements, it's clear that this will be a big industry for those with the experience to build it right. 

Executive Decision: LivePerson  

In his second "Executive Decision" segment, Cramer also sat down with Robert Locascio, CEO and founder of LivePerson (LPSN) , a stock that's up 70% for the year.

Locascio explained that the millennial generation doesn't like to talk to people, which makes the old model of customer service, which included only a 1-800 number, obsolete. Today's consumers want to use text messaging to talk to an intelligent agent to place orders, get answers and solve customer service issues. That's why LivePerson's addressable market continues growing year after year.

Locascio said that after starting as a chat software provider, he realized five years ago that the future was in artificial intelligence, bots and automation, which is why he pivoted his company and is now a leader in this market.

Locascio added that LivePerson is not just a channel of communication but rather a transformation of how businesses operate. He said there's no reason why salespeople can't chat directly with customers before they arrive at a store, for example, something that retail has never seen before. 

Lightning Round

In the Lightning Round, Cramer was bullish on Dropbox (DBX) , Arthur J. Gallagher (AJG) , Starwood Property Trust (STWD) , The Blackstone Group (BX) and Intuitive Surgical (ISRG) .

Cramer was bearish on Diamondback Energy (FANG) , Occidental Petroleum (OXY) and Phillips 66 Partners (PSXP) . 

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At the time of publication, Cramer's Action Alerts PLUS had a position in BURL, PEP.