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NEW YORK (TheStreet) -- The sky is falling! Sell everything!
That's what the markets would have you believe, Jim Cramer said on "Mad Money" Monday. He said the crisis in Ukraine is just another in a long list of foreign crises that have the markets operating on emotion instead of logic.
Cramer explained that every time a crisis breaks out the algorithms rule, and that means the S&P 500 futures get hit hard, taking the broader markets with it. More seasoned investors may recall that the 1998 Russian crisis took a toll on the markets. Today, Cramer said, there simply aren't the same linkages putting the U.S. markets at risk.
Just like previous crises in Egypt, North Korea, Cyprus, Turkey and Greece, the markets are likely to follow the same pattern. The selling begins on day one and continues throughout day two as the media turns to 24/7 coverage of the event. Beginning on day three, the smart investors begin nibbling at the stocks hardest hit. Day four, in this case, will likely be down again as investors worry about the non-farm payroll numbers on Friday.
By day five, which will be Friday, the markets will likely react to the non-farm payroll report, but then be a coiled spring, ready to snap high going into next week, Cramer said.
What to Do With Baidu
What should investors looking for growth in China do with shares of Baidu.com (BIDU)? The answer may not be clear given that the stock received a downgrade and a price target cut from one analyst, only to receive an estimate increase from another later in the day.
Cramer said when analysts disagree, investors win because they get to hear both sides of the argument. In the case of Baidu, which just reported a two-cents-a-share earnings beat on better-than-expected revenue with raised guidance, it's hard to believe that an analyst found something not to like. But one did.