×

Cramer: Negative on industrials, but there is still opportunity in the US

Though the US industrial sector is down 2.3 percent in the past month, Jim Cramer is recommending that investors take a skeptical look at the foreign industrial sector as well.

Cramer correlated the falling interest rates with current events in Europe. "When you see the number from Germany, it's obviously very weak", he said on "Squawk on the Street" on Wednesday.

Germany reported a September manufacturing PMI of 49.9 on Wednesday, indicating the first contraction in fifteen months.

The hesitation in the European industrial sector stems from the simple fact that the world is a volatile place right now. Current events such as the war against ISIS, and the unrest in Ukraine have contributed significantly to the slow down in Europe.

"People really have to understand. Our interest rates are really controlled by foreigners right now," Cramer said.

Jim Cramer
Adam Jeffery | CNBC
Jim Cramer

However with positive things happening in retail and restaurants, Cramer made clear that he is not entirely negative on the US. He recommends that if investors stay domestic, they will do better ultimately in the long run.

Read MoreWinners and losers from the dollar's rally

Ultimately Cramer recommends investors do not get out of the market, but rather evaluate where the opportunities are. With domestic stocks declining Tuesday, he points out that the opportunities are in the United States currently. When things are strong, this will cause the rates to go down as well as commodities.

"I am in no means saying get out of the market, I am saying to re-evaluate. Because if you are in international industrials, you're not going to make the numbers," Cramer said.

Read MoreTriple-digit drop for Dow as global worries hit stocks