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This piece has been updated and revised from its original publication. NEW YORK ( TheStreet) -- Expect another big week for earnings, Jim Cramer told "Mad Money" Friday as he laid out his game plan for next week's trading. Cramer said that with so many corporate report cards coming in, the markets might not even have time to notice Europe's woes for a while. On Monday, Cramer said he'll be watching Eaton ( ETN), a stock he owns for his charitable trust
Not the End of the WorldNot every big decline in the markets signals the end of the world. That's why no matter what the crisis of the day, it's never a good idea to sell everything, as not all stocks are equally good or equally bad, Cramer said. When bad news hits, Cramer told investors to look at the stocks in their portfolios and rate them on a simple scale. Stocks you rate No. 1, for example, could be the ones you believe in and buy more of as they head lower. Stocks in the No. 2 camp could be those that could be sold if you needed to raise cash. Meanwhile, the No. 3 stocks could be those that are expendable and should be sold now.
Know What You OwnCramer's next tip for investors: Know what you own. He said in today's media-driven world, investors simply should not own a stock unless they know why they own that stock. Why? Because the media has never met a negative story it didn't like. From the Japanese tsunami to the problems in Europe, Cramer said that investors should just assume that every story they see on TV or read in the papers has been exaggerated in some way. So unless investors know why they own a stock in the first place, it will be far too easy for them to bail out on their stocks at the first sign of trouble. Cramer recounted what he used to call his "Bristol-Myers Theorem," derived from Bristol-Myers Squibb ( BMY), a drug company with the most consistent earnings imaginable. He explained that back at his hedge fund, any time an associate would run in, panicking about a negative story, he would always ask, "How does that affect the earnings of Bristol-Myers?" In just about every case, it didn't. That's why Cramer often recommends reliable, consistent earning stocks with great dividends, stocks like Kinder Morgan Energy Partners ( KMP) or Verizon ( VZ) or utilities such as Southern Company ( SO). Cramer said no matter what the negativity of the day, companies like these will allow investors to put those stories into perspective.