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NEW YORK (TheStreet) -- Today was a hideous day for all stocks, Jim Cramer told his Mad Money viewers Tuesday, but it should've only been a hideous day for some stocks. That won't be apparent for a few days, Cramer added, but eventually the smart investors will start picking up the bargains.
With the advent of index funds, it's easy for the entire market to trade in unison in the short term. But over the long term, all stocks can't be bad at the same time. The U.S. dollar was strong today, but that means that the domestic names we liked earlier this year, mainly the restaurant and retail names, should be back in vogue.
If interest rates are inching their way higher, then the dividend stocks, like the consumer packaged goods, REITs and utilities should be good investments. Meanwhile, if you believe oil is back on the decline, then the airline stocks should start soaring again.
What happens if the Federal Reserve raises interest rates, something Cramer said would be a horrible idea given how our economy is weakening? Well, then the health care and biotech stocks, which are impervious to interest rates, should be bought.
Let the selling run its course, Cramer told viewers. Then, once things settle down, start picking through the rubble for the stocks that went lower but shouldn't have.