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Sick about selloff? Ask yourself this: Jim Cramer

Jim Cramer has been saying for quite some time the market could sell off. And he was right. So, what now?

"We were too euphoric," he said on CNBC's "Street Signs." "I've been saying that."

In fact, the "Mad Money" host has been saying it since Monday Sept. 15, shortly before the Alibaba IPO.

Jim Cramer
Adam Jeffery | CNBC
Jim Cramer

At the time Cramer said the excitement surrounding the company's public offering could drive the market to artificial highs.

Not only would pros go to extremes to own Alibaba, but in order to generate capital, they would sell winners to fund their purchases, according to Cramer.

In turn he feared the selling could generate a downward spiral that would take down the entire market.

As it turned out, Cramer's call was prescient.

Read More Tech investors facing Alibaba headache

Going forward, the question for the individual investor becomes, what now?

Although Cramer says the market could fall further, he also says shrewd investors should ask themselves a simple question, "A year from now, what will you be thinking?

The way in which you answer that question, should inform investment decisions going forward.

That is, if you believe the world will be worse, it may be time to change your investment strategy.

However, if you believe the Ebola crisis will be akin to SARS and largely stemmed, and if you believe that the woes of Europe as well as the geopolitical crisis in Russia will be less ominous, then, as he so often says, stocks probably offer you the best path to long-term prosperity.