If this were the old days and rates were about to go up, Cramer would recommend investors go for industrial stocks because their earnings will improve as the economy improves. However, that is no longer possible as most big industrial companies have become too dependent on overseas earnings, and a stronger dollar will create challenges as cash floods into the U.S. and away from countries across the ocean.
Cramer also warned that investors need to start to be careful when reaching for trades that have always worked in the past. In addition to skepticism about the industrials, that also means to be careful when buying large tech companies that have exposure in Europe.
Higher rates also mean housing stocks will get hit because mortgage money will cost more. That means homebuilders will have to hope for high employment rates, and that banks will ease terms to lend money.
People also tend to buy gold when interest rates go higher, because it will retain its purchasing power when inflation is higher. Thus, if investors think inflation is imminent, they will all flock to gold.
"There is one issue with gold that you might want to keep in mind. Gold's been in a bear market so long that many of the producers who thought gold would grow to the skies do not have the money to continue to find gold," Cramer added.
With this in mind, Cramer recommended the only exception to this is Randgold, or to buy the gold ETF called GLD, or gold bullion itself. But don't worry—Cramer doesn't see any inflation on the horizon yet, so there is no rush to buy gold.
Read More Cramer: Best stocks to pick when the Fed tightens
Many investors will also want to create short positions against the market. And while Cramer is not allowed to create short positions in his Charitable trust, he did short almost every day when he worked with Karen Cramer at his hedge fund. In fact, Karen Cramer hated long positions and loved the short side.
And Cramerica is just in luck, because Karen Cramer shared her short-selling rules with Cramer. Rules that are timeless and can still be applied today.
Rule number one is called the Business Week cover rule. At the time, this publication often featured companies on the cover, and when it did the stocks jumped. Thus the rule to never short a company that could be on the cover of a big publication was born.
The second rule is to ask yourself, can the company be taken over? If it can, then don't short it. Cramer was burned on this rule three times in his career, and when he looked back he remembered that there were takeover rumors about all of them. He ended up taking a loss on all three companies.
Rule number three is to never short a stock because it seems like it's overvalued. Cramer advised never to try to call an irrational top based on multiples of sales, or earnings. Why? Because there will always be a mutual fund out there that will crush you.
The fourth rule is to never use a common stock to short if puts are available. In the case where Cramer lost money on the three takeover bids, puts would have stopped him from the hideous losses.
"I know you might be itching to short. I am just begging you to realize that there is substantially more downside and you must be much more disciplined if you are going to pull it off right," the "Mad Money" host added.
In that case, it might be a better idea to raise cash and be ready to use it in the next Fed-related downturn.
Read MoreCramer's 6 vital rules to short selling