Know When to Hold 'EmRight now is not the right time to sell or buy, said Cramer. Instead, he suggests sitting tight and holding on to what people have. Although he knows it can be difficult to do, he believes that selling into the weakness would not be the correct move. At the same time the market is still not oversold, and he said he doesn't see a major rally yet. With 90 rate increases along the globe, the rate hikes are hurting businesses, he said. Although he does not see any more rate hikes six months down the road, people tend to look at stocks on a day-to-day basis and are getting impatient, he said. But sit tight, he suggested, there could be better times ahead. Although newspaper stocks seem to have reached a level where they reflect franchise value, Cramer said there is no growth to them. Growth is the reason we buy stocks and what we want out of stocks, he said. Right now newspaper stocks look good because they are cheap. But in fact, their growth is going down, while their earnings are going up because they are firing people, he said. "That's not sustainable," he said. "We want earnings to go up because of growth." Ever since the Internet, Cramer said there's nothing cooking in newspapers. Stay away from these stocks, he warned.
Batteries IncludedEveryone needs batteries, people are worried about their lawn in the summer, and personal grooming never stops, said Cramer. Investors should consider buying these companies in tough economic times, because batteries, lawn and grooming products are products people always buy. This is why market players thought Spectrum Brands ( SPC), a consumer products company was a hiding place, Cramer said. However, the brands that Spectrum offers are not best of breed, he said emphasizing that people should not buy into anything other than best-of-breed companies for these products. For personal grooming, Cramer recommended looking at Procter & Gamble ( PG) and lawn he suggested Scotts Miracle-Gro ( SMG). While the headline from this morning's Ad Age , which reads "Interpublic Stock Plunges, Stoking Acquisition Chatter," might make people want to buy Interpublic Group of Companies ( IPG), Cramer said he would avoid the stock as it is too dangerous. The only thing the company has going for it right now is that its stock has come down, he said.