That's it, Jim Cramer has had enough! Despite all of the negative market news on Wednesday, he decided to point out positive things that are happening now.
"Before I get all positive, here's a caveat: nothing I'm about to say will mean anything to you unless you have at least a 10-day time horizon," the "Mad Money" host said.
To fully explain, Cramer recalled the old days, when he was a hedge-fund manager. Every morning he would review the fund positions with his team.
And while the meetings sometimes got ugly, they were always dead right. It was this exact process that led the fund to being so successful.
In the beginning of the meeting, everyone would share their intermediate view of the world. Meaning, what did Cramer think would happen in the world and how will it impact stocks for the next month or two.
"We're not talking about trading here, though, because that's not what most of you do, and I've said repeatedly that if you are going to trade, you need to be very hands on and treat it like a full-time job," Cramer said.
So, if Cramer were still at his hedge fund, what would his intermediate term worldview be?
First is the vicious downturn of commodities such as copper, aluminum, iron ore, oil and its derivatives. However, it is important to keep in mind that the U.S. is more of a consumer of these commodities than a producer. Thus, the lower prices are positive, not negative.
Judging by the action on Wednesday where oil plummeted to $41, Cramer has to regard the move as a major positive for most companies.
The second topic on Cramer's mind is the notion that the Fed will tighten in its September meeting because housing and employment are strong, and the Fed might not care about what is happening overseas.
And just taking one look at the stock that are being sold in the market, Cramer can see that money managers are getting out of the stocks that will be hurt when the Fed tightens. However, either way it is a win-win: it's a win if it tightens because the stocks already reflect the tightening, and it's a win if they don't tighten because most people are not prepared for that to occur.
Another topic on Cramer's mind is China, which is falling apart because its government is trying to prop up stocks that deserve to be much lower, and that will cause a large worldwide slowdown.
It was the persistent challenging of his team that encouraged Cramer to think differently about these issues, though. He ultimately began to understand that instead of being stuck in the house of pain, Cramer needed to imagine what would go higher because of his worldview.
Thus, Cramer concluded that investors should be buyers of stocks right now that do well in a deflationary environment. Those groups include food, drugs, biotech and extreme growth tech.
Read more from Mad Money with Jim Cramer
This group also includes stocks with high yields because they will be great bond market equivalents, such as Kimberly-Clark, Clorox and Ventas. Cramer also added that investors should be buying stocks of companies that benefit from declining commodity prices.
"That method worked at my hedge fund, where we compounded at 24 percent after all fees, and it will work now," Cramer said.