Jim Cramer on How You Can Tell if a Company Is Recession-Proof

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Jim Cramer weighs in on what investors are wondering about the markets.

Today, during TheStreet Live With Jim Cramer and Katherine Ross, Cramer answered a Twitter question.

Want to get your question answered? Send in your questions to @TheStreet and @ByKatherineRoss

Video Transcript:

Katherine Ross:
Yeah. Jim, I do have a Twitter question for you today.

Jim Cramer:
Okay.

Katherine Ross:
And I think that this is something that I'm seeing pop up a lot more. So, Will asks, "How do you find out if the company that you're looking to invest in is using leveraged loans or if it can survive a recession?"

Jim Cramer:
Well, I mean, you have to look at the balance sheet. And I think it's really important. And, by the way, it's not easy. I'm not saying that it's, "Come on, how come you're not looking at the balance sheet?" But the problem with a lot of what we're trying to do in the Club is we try to explain exactly that. "You have to look at the balance sheet. Here's what we see." When we did our conference call...want everyone to go listen to the conference call. Sign up and go listen. What we did was we talked about which...the companies that are uniquely not capable of handling this, doing it from the balance sheet perspective. I'm not saying that you can't figure it out yourself. I am saying we do the work for you, for the recommended list, and so we're the best source you're going to get.

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