"After a series of up days, the markets are seeing a slide," Jim Cramer said on his

"RealMoney" radio show Wednesday.

That's because "market participants are worried that the economy might be derailed by a slowdown rather than inflation," he added.

People are concerned because a report issued by the National Association of Realtors stated that last month's home sales were down and inventory of unsold homes was up, Cramer said.

This news makes market players wonder whether there will be a hard or soft landing, he said. But the way he sees it, Cramer believes that the economy is going to have a soft landing with "pockets that are hard."

Reviewing the divisions of the economy, Cramer said that in housing there will be some areas that will see "a rise of mortgage defaults, and homebuilders will be going belly up ... but there are areas where it is still strong."

"I refuse to write off housing," Cramer said.

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In the banking sector, he said companies are raising their dividends and buying back more stock.

Regarding autos, Cramer said while he was worried about

General Motors

(GM) - Get Report



(F) - Get Report

a year ago, he believes that both automakers have made changes to turn themselves around.

"Ford is one of the best buys out there," he said.

In addition, retail has also been really strong, he said.

Another area that's working is the defensive stocks, including


(MRK) - Get Report



(PFE) - Get Report


General Mills

(GIS) - Get Report


Procter & Gamble

(PG) - Get Report

, Cramer said.

"There are problems with the economy, but we are not going to have a hard landing," he said. "There is no other game out there that can make you as much money as stocks."

Advanced Micro Devices

(AMD) - Get Report

is a big semiconductor company that has been taking share from


(INTC) - Get Report


Six months ago this stock "was riding along $40," in mid-July it was worth $17 and today it is trading around $25, Cramer said.

Although he understands that "would've, should've, could've doesn't help now," AMD should've been bought at $17, he said.

The stock slid from $40 to $17 because of the negativity brought on "by the prospects of a brutal price war with Intel" and because of its $5 billion acquisition of

ATI Technologies


, Cramer said.

Too many people got out, and a bottom formed, he said, about AMD's mid-July price.

"I will admit when I make mistakes, and I did so with AMD," Cramer said. "I gave too much credit to the once-almighty Intel in their ability to crush AMD by cutting price."

But in fact, Intel cannot destroy AMD, he said. Although Cramer does not believe that people should buy AMD since it has spiked, when it pulls back, "load up," he said.

Whenever the

Federal Reserve Board

is asked what it is going to do with interest rates, people will usually hear two words: "data dependent," said Cramer.

Existing-home sales numbers came out, and "it wasn't pretty," Cramer said, returning to his earlier topic.

In July, the sales of existing homes and condominiums dropped 4.1%, and existing inventory of unsold homes last month rose to a record of 3.86 million, Cramer said.

This means that at the current sales pace, it would take more than seven months to get rid of the surplus, he said.

Cramer said he brought this information up because investors sometimes "jump the gun on economic data." When they see that the housing numbers are soft, people assume that the Fed will stop raising rates. But don't assume anything, Cramer said.

Housing, and cyclical stocks related to housing, won't move until the Fed is actually cutting rates, Cramer said. Until it does this, stay in the supermarkets, pharmaceuticals and the staples, he said.

"Those are products people consume, regardless of the uncertainty," Cramer said.

An individual stock that he believes is worth owning now is




Responding to a listener who emailed Cramer asking him about investing in bonds, Cramer said he has a "radical position" on bonds and believes that younger people shouldn't be in them.

"Bonds should not play a part in your portfolio until later in your life, as you won't make additional money in bonds," he said.

Cramer's Callers


(S) - Get Report

is a stock which has come down enough to make it a takeover target, Cramer told a caller.

It could be done going down here, Cramer said, adding he would be a buyer.

Referring to

Peabody Energy

(BTU) - Get Report

, he told a caller to take a longer-term view with coal.

"We're the Saudi Arabia of coal and Peabody is the best play," Cramer said.

In addition,



, which Cramer owns for his charitable trust,

Action Alerts PLUS, is the cheapest infrastructure play that provides equipment to companies in the coal sector, he said.

"It is an overlooked infrastructure stock" that people should look into buying, he said.

When a caller asked about


(AAPL) - Get Report

, Cramer said that anytime it is down, he wants people to buy it.


(GOOG) - Get Report

is under pressure now that



, which Cramer also owns for

Action Alerts PLUS, has "gotten its groove back," he said.

Until Yahoo's Project Panama is released, Cramer advised not buying Google.

Responding to a caller's inquiry about


(QCOM) - Get Report

, which he also owns for

Action Alerts PLUS, Cramer said the stock has been "a house of pain."

"This has gone from being a loved stock to a hated stock," because people believe that it has angered its customers, he said.

"But I think it's cheap," Cramer said, adding that the Qualcomm is a "smart company with a great balance sheet."

He urged a caller to buy

J.C. Penney

(JCP) - Get Report

, which he called "the single best retailer out there."

The company caters to low-end, midrange and high-end customers and is a cheap stock selling at one times its growth rate, Cramer said.

At the time of publication, Cramer was long Yahoo!, URS and Qualcomm.

Jim Cramer is a director and co-founder of TheStreet.com. He contributes daily market commentary for TheStreet.com's sites and serves as an adviser to the company's CEO. Outside contributing columnists for TheStreet.com and RealMoney.com, including Cramer, may, from time to time, write about stocks in which they have a position. In such cases, appropriate disclosure is made. To see his personal portfolio and find out what trades Cramer will make before he makes them, sign up for

Action Alerts PLUS. Listen to Cramer's RealMoney Radio show on your computer; just click

here. Watch Cramer on "Mad Money" at 6 p.m. ET weeknights on CNBC. Click

here to order Cramer's latest book, "Real Money: Sane Investing in an Insane World," click

here to get his second book, "You Got Screwed!" and click

here to order Cramer's autobiography, "Confessions of a Street Addict." While he cannot provide personalized investment advice or recommendations, he invites you to send comments on his column by

clicking here.

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