Sometimes investors just want to throw out all of their stocks and decide to get out of the game. That was quite evident to Jim Cramer on Thursday when the averages continued their losing streak.
But there is something different about this selloff that bothered Cramer. It reminded him more of the selloffs the market experienced between 2007 and 2009 than the ones we recently experienced.
"I think this market has changed, in that the vast majority of portfolio managers have suddenly become fearful of buying the dips," the "Mad Money" host said. (Tweet This)
Meaning, for the longest time, the best strategy of the era has been to wait for the stock of a company that you like to come down to a bargain price and then buy it.
"But something is different this time and it's got people taking a pass on this dip. This time the decline feels more like the 2007 to 2009 period where buying stocks on the way down just meant you were going to lose money," Cramer said. (Tweet This)
The only real leader on Thursday was Netflix, which Cramer referred to as the slayer of all things media. But what is good for Netflix, is good for Netflix alone, unfortunately.
So with a market with new lows and no new followers, Cramer came to one conclusion: buying dips has become the equivalent of falling off a tight rope without a trampoline or safety net. It is now a symbol of complacency.
Cramer warned investors that it is time to keep cash on hand. Do not fall in love with stocks as they dip, and accept the fact that you are no longer buying a dip.
What the heck happened to Allergan? The acquisitive drug company formerly known as Actavis reported a strong quarter on Thursday, beating Wall Street's sales and earnings estimates.
But instead of rallying on the results the stock was slammed hard, down 5 percent on Thursday.
This was the first full quarter reported since its transformational acquisition of Allergan back in March. It is also the first quarter reported since investors learned that Allergan will sell its generic drug business to Teva for more than $40 billion.
It also did not help that management said that the business could be difficult to forecast for the next couple of quarters. The company also received a subpoena from the Justice Department as part of a probe into generic drug prices. It was the compilation of these events that took the stock lower.
So is this the long-awaited pullback of a lifetime for Allergan, or are these events symptoms of a bigger issue? To find out, Cramer spoke with Allergan CEO Brent Saunders.
"The DOJ investigation really is a red herring. Each one of these things are important, and we disclosed it this morning," Saunders said.(Tweet This)
Read More Allergan CEO: More bold acquisitions are possible
One bright spot in the market on Thursday was Clorox, which has given investors a return of more than 10 percent with dividends since the beginning of the year.
The company reported on Monday and once again beat the numbers. The great quarter prompted the stock to jump to $115 on Monday, from just below $112, and it hasn't looked back since.
So, with Procter and Gamble down 10 percent this year, Colgate flat and Kimberly-Clark achieving just 2.8 percent for the year, Cramer wonders if the performance for Clorox is sustainable.
To find out, he spoke with Clorox CEO Benno Dorer.
"We are investing in an acceleration of growth, but not just any growth—good growth. Good growth for me is profitable and consistent," Dorer said.
It was also Cramer that there is a sectorwide decline in media stocks, prompted on Wednesday by Disney's admission of a loss in cable subscribers which sent investors into a state of panic. Could this be the end of the world for media stocks?
"No, but it's certainly the end of their high valuations," the "Mad Money" host said.
Institutions continue to sell Disney at such low prices because they no longer believe that it is a growth stock. They simply want it out of their portfolios, at any price.
That is a dumb move, in Cramer's opinion. However, he understands why they are selling the stock. Many investors think that the entire media group is not worth as much as it used to be because they have less growth than most portfolio managers thought.
There is no denying the fact that if Disney cannot grow its subscribers it will have to either cut prices or diversify away from cable.
"The issue I have with the sellers is that it's not like Disney's CEO Bob Iger doesn't know this," Cramer said.
Ultimately, once the Disney smoke clears, Cramer expects that the company will be in there buying back stock, and you should be in there with them.
Read More Cramer: Why Disney's stock is about to bounce
Another company that reported strong results recently was Zoetis, the largest animal health company in the world that makes vaccines and medicines for both pets and livestock.
Yet, despite the fact that it reported a robust quarter on Tuesday, the stock did not rally significantly. Cramer thinks this is exactly the kind of stock that investors should be buying on a day like Thursday when everything got crushed.
With noted activist Bill Ackman's Pershing Square owning more than 8 percent of Zoetis, Cramer wondered if the stock could get rolling higher? To find out more, Cramer spoke with Zoetis CEO Juan Ramon Alaix.
"We now have a representative of Pershing Square on our board, and it is good to have the perspective of an important shareholder in the discussion with our board. So, I think the collaboration is going very well," Ramon Alaix said.
In the Lightning Round, Cramer gave his take on a few caller favorite stocks:
Voya Financial: "I like the stock very much and think it's a pretty good situation, frankly."
Salesforce.com: "This stock has held in very well at the $70 level. Now the high price-to-earnings multiple stocks are all coming down, and I think buying Salesforce.com is a good, not bad, idea."