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NEW YORK ( TheStreet) -- The stock market is starting to look like Goldilocks versus the three bears, Jim Cramer told his Mad Money viewers Tuesday as he opined on the markets' late-day selloff. The bears may have won the day, he explained, but there's still hope for Goldilocks going forward.
Continuing with his analogy, Cramer said that Brazil is shaping up to be the baby bear in this fairy tale, with Petrobras (PBR) , its largest oil company, announcing big cuts in its exploration budgets in order to help pay its looming $100 billion debts.
Then there's momma bear, the scores of tiny U.S. shale drillers that have paid too much for their land over the past two years and now need oil prices significantly higher in order to survive. With no bottom for oil prices in sight, it will take time for these weaker players to get flushed out, Cramer noted.
Finally, there's papa bear, Russia, a country whose economy is crumbling by the day as oil prices decline and international sanctions take hold. Even Russia's sharp rise in interest rates won't be enough to save this ailing economy or its impacts on Europe.
But all of these bears are battling Goldilocks, Cramer continued -- a U.S. economy that's strengthening by the day as investors flee the rest of the world, keeping our interest rates low. That means more people buying homes, more homes being built and more retail spending, Cramer explained.
But while Goldilocks prevails in the fairy tale, Cramer cautioned the three bears will be around for awhile and investors shouldn't expect that perfect bowl of porridge quite yet.
Executive Decision: Gary Friedman
Friedman said his company's decision to offer investors a first-ever video conference call is because Restoration Hardware is in a visual business. So offering a video conference call seemed like the right thing to do and was very well received by investors and analysts.
Turning to his company's business, Friedman explained that typically when retailers become public companies they stop innovating and start merely replicating their initial successes. Restoration Hardware is different, which sometimes makes the company difficult for investors to understand. "We will always be different and always be moving forward," he explained.
Friedman said if mall traffic is dying it's because retailers lack imagination and have created dark, windowless boxes that customers just don't want to visit. That's why Restoration Hardware stores are more than galleries, they're places people want to spend time in.
Cramer said simply that investors shouldn't trade Restoration Hardware, they should just own it.