If you're a fan of scary movies then the current market might remind you of Amityville Horror, Jim Cramer said on his "RealMoney" radio show Thursday. Everything in tech is a disaster, and gold is up, which is a sign that people are scared, he said. Cramer said although market players may have the temptation to sell everything they have and get out of the market in this type of environment, this is not the right thing to do. Eight years ago, when the market was really low, Cramer thought it would be best to get out. But shortly after, the market bottomed and then rallied for two-and-a-half years, he said. You have to remain cool and calm in this situation, he advised. On Thursday, a bunch of companies were downgraded, including Wal-Mart ( WMT) and Disney ( DIS), he said, adding that natural gas drillers were downgraded as well. If people want some relief, Cramer said they should go to cereal and soup stocks, such as Kellogg ( K) Campbell Soup ( CPB) and General Mills ( GIS). People need to look for stocks that have been hammered but still represent companies which are fundamentally good, he said. "Whatever you do, let's not all get out," he said, adding it could be as wrong as it was in 1998.
Leaving Home Depot
This week's readers' pick, Home Depot ( HD), doesn't have the same room to grow as its rival Lowe's ( LOW), Cramer said. Readers of TheStreet.com chose Home Depot as the stock for Cramer to discuss. Although the company's management is not that good, Cramer said Home Depot was falling apart before the company's CEO Robert Nardelli came in. As cheap as Home Depot is, Cramer said he believes Lowe's is better. Lowe's has growth rates as far as the eye can see, he said. While Home Depot has stores everywhere, Lowe's has room to expand.