Mad Money

Cramer Comments on His Shopping List

Cramer on Power of Dividends

Get your shopping list ready, Cramer said Thursday.

"You don’t want to go shopping without a shopping list," the "Mad Money" host said. "And you want to pay your price, not the posted price."

For that reason, Cramer recommended raising cash when the market rallied last week. He suggested selling technology and bank stocks while preparing yourself for the next downturn, so you can buy more resilient stocks. Just as important as the list of stocks, is the price at which each name should be bought, Cramer said. Investors should wait for the right level before buying.

Of the stocks on Cramer's list, he said investors should have only bought one name so far: Honeywell International . After all, he noted it's the only stock that's fallen to the price he was looking for. It dropped three points after catching a downgrade from Sanford Bernstein, which Cramer said was more about the macro economy than it was about HON.

So why did the rest of the stocks on Cramer's list do well? Simple. It's all about yield protection, Cramer explained. High-yielding stocks tend to fare better in market downturns. Upon recognizing this, investors are opting for high yielders over lousy, low-yielding government bonds.

As it turns out, Honeywell has the lowest yield on the list. So naturally, it got hurt the most.

So what's the bottom line?

"On a hideous day, where stocks with buybacks but no yield support went kerflooey, the biggest problem you had with my shopping list is that almost all of the stocks weren’t down enough yet to pull the trigger," Cramer said. "You are literally hoping for a down enough day tomorrow to put the money to work. Where I come from, that’s one heck of a high quality problem."

Call Cramer: 1-800-743-CNBC

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