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Dealing With a Decimated Dow

Thursday, 26 Jun 2008 | 6:30 PM ET

When the Dow drops 358 points, there probably isn’t an investment in any portfolio that’s working – except for gold, maybe.

Staying in the Game
Mad Money's Jim Cramer tells investors what they need to know in order to stay in the game, even through tough times like these.

Nike , which Cramer called the best consumer products company out there, and Research in Motion , the best story in tech, are both down big Thursday. So forget about the banks, retailers, airlines and industrials. Boeing, Citigroup, General Motors, Honeywell – none of them can be touched.

Cramer recommended circling the wagons around minerals, oil and gas and agriculture stocks. Gold, too. Of course, even these names – ConocoPhillips, Vale and Potash, to name a few – went down today. But that’s an opportunity, he said, not a reason to run.

Cramer’s other suggestion: Raise cash. Sell stocks if you have to. He said this sell-off probably isn’t over, so take profits and wait for a better entry point.

When the market finally bounces back, what’s the first to rally? Recession stocks, China-related commodities and commodities in short supply. Chesapeake Energy for natural gas, Schlumberger for oil service, Heinz and GlaxoSmithKlein , Cramer said.

“When we do get the light at the end of the tunnel – and I do not believe it’s a train coming at us,” he said, “those stocks will recover first.”




Jim's charitable trust owns ConocoPhillips.

Questions for Cramer? madmoney@cnbc.com

Questions, comments, suggestions for the Mad Money website? madcap@cnbc.com

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