Keep your cool, Cramerica. Low interest is good!

In this wild world of investing, Jim Cramer compared this market to a spoiled house-cat—it gets whatever it wants and is completely unpredictable. The days of it being a lovable man's best friend are completely over. That's a profound change in the landscape.

But even though you might get bit or scratched, Cramer wants you to make peace with the market.

So how the heck did the landscape change so violently? Every day is different than the next, and the averages change dramatically from one hour to the next. It just doesn't behave like investors want it to.

Wednesday's decline was driven by low interest rates, when the 10-year Treasury fell to 1.8 percent, a big change from where they were last year in January.

Think this is a bad thing?

Cat with fangs out
Joe Drivas | Getty Images

"In the 36 years I have been at this darned thing when interest rates go down, it's been good. Why? I'm counting the ways," the "Mad Money" host said.

When interest rates go down, it stimulates business activity. Thinking of buying a house? This might be the time, now that housing will offer more affordable rates.

Additionally, low interest rates indicate less inflation. That's a good thing, as inflation refers to the value of money. So, if there is low inflation, consumers have the confidence to purchase goods and services. Moreover, they'll want to borrow funds because they know they will get their money's worth.

Cramer also interprets less inflation to mean that investors will be willing to pay more for companies based on their future earnings. That means classic growth companies should be priced at higher levels, which Cramer expects will unfold.

Lastly, when interest rates are lower, investors will be more likely to buy stocks with good dividends that act like bonds. Think about it, why buy a bond that is yielding 1.8 percent when you can buy a stock that yields 3 percent?

"These are all gospel. They're all what eventually happens," Cramer said.

But that is not what is happening. This is a new landscape, remember? The friendly pup is now a standoffish feline.

"We've got cats, wounded cats that can't hunt other animals, and what happens when tigers are too hurt to chase swift-footed prey? They turn man-eater, because humans are easy prey. That is what is happening right now," he added.

So how does one approach wounded cats?

Cramer knows that many won't be able to take the pain and will bail out. Don't follow the crowd, Cramer warned. They are not being logical.

Some stocks should be sold, such as those based on oil or copper; like Exxon, Schlumberger and General Electric. This makes sense.

But to dump everything under the sun? That does not make sense.

Cramer recommended hanging on to those stocks with good yields, such as food and drug companies. They are worth more with lower interest rates and commodity costs. He also likes the restaurant and retail sectors, despite the chatter of low retail sales in December.

Read more from Mad Money with Jim Cramer
Cramer Remix: The MVPs of today's market
Cramer's charts show shocking news on Treasury bonds
Cramer: Navigating a volatile trader's market

The "Mad Money" host also likes companies with a bright future, such as technology and biotechs. Those should be valued based on the value of the future, not today.

So let people panic. Good. Let the stocks come down, and create a window of opportunity for investors. Their panic is your gain!

"Funny thing we forget on days like today? Cats have nine lives. You may think that the world's coming to an end because of the action on your screen. Me? Sure, maybe one of this market's lives is getting knocked off here."

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