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Jim Cramer: I want to call it for purposes of alliteration and memory for you, we got the three m's, the macro worry, the micro worry and the mechanics worry. All right, how about the micro negative? So many of these back row issues bled right into the estimate cuts that we most feared. We have companies that can handle the tariffs and those who can, uh, Kohl's and to some extent Five Below can get whacked. It's one of the reasons we sold a lot of the Five Below. Oh, we sold it higher. Kohl's, we sold higher and I've already told you we bought back lower. Home Depot too. We had to trim some of that. Uh, because Home Depot is hurt by tariffs. They turned out to be great sales and we, as I mentioned, rebuilt Kohl's. But how do you handle tariffs based on Lambs best customers? Oh man micron run down a buck 8. Can you own Facebook, Alphabet, Amazon and Apple through this populous assault? Well, we've tried, but we did not add to weakness on any of those stocks. Suffice it say that between tariffs and a more sluggish economy, we do expect that almost every stock, the micro, will be hit. And that's why we did those across the board cuts. Beware when we sell the good ones, you know, we think a real storm is coming.

So, when should you start trimming your portfolio?

During his June conference call for Action Alerts PLUS members, Jim Cramer explained when he and his analysts decide to trim positions within their portfolio. 

Cramer's team started trimming their positions back in April, which set them up to weather a stormy May. 

"Suffice it to say that between tariffs and a more sluggish economy we had to expect that almost every stock would be hit. That's why we did across-the-board cuts. Beware, when we sell the good ones you know we think a real storm is coming," Cramer explained. 

Want to know what else Cramer only told members of his Action Alerts PLUS investing club? Recap his full call here.

Jim Cramer Dives Into the Macro