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Cramer: Don't fear a Brexit, it's not as bad as you think

Jim Cramer cannot deny that the stock market is in a bad moment, but there have been much worse times before. So, he's not running for the hills over a potential Brexit.

"Remember that this bad isn't nearly bad as some other bads we have been through, they just all feel the same way when they are happening," the "Mad Money" host said.

Yes, there are things going wrong all over the place. Oil prices are falling, the Federal Reserve may or may not be on hold, and there is a vote happening in the U.K. next week that has investors worrying that there could be negative implications if Britain decides to leave Europe.

"We have imported all that doom and gloom, although at least our bonds still yield something, unlike the German 10-year Treasury that doesn't make you any money at all," Cramer said.

The real question is, how bad can it get?





A general view of the Building of the European Parliament on May 12, 2016 in Strasbourg, France.  The United Kingdom  will hold a referendum on June 23, 2016 to decide whether or not to remain a member of the European Union (EU).
Getty Images
A general view of the Building of the European Parliament on May 12, 2016 in Strasbourg, France. The United Kingdom will hold a referendum on June 23, 2016 to decide whether or not to remain a member of the European Union (EU).

Cramer compared the Brexit sell-off to Oct. 4, 2011. That day the cover of the Wall Street Journal read "Market nears bear territory, U.S. stocks down almost 17 percent since April high on Europe, economic concerns."

Many investors at the time were afraid of a default in Greece. The S&P 500 was actually down 19 percent since April, the lowest levels in more than a year. What many investors did not realize was that day marked the exact bottom of the market.

For those who invested in the S&P 500 that day, they could have almost doubled their money in just five years. The key was to have the courage to invest in the middle of recession fears.

"Fortitude, you see, can occasionally triumph over fear, and on some of those occasions it can make you an awful lot of money," Cramer said.

While Cramer did not suggest investors to rush in and buy stocks right now, he did acknowledge that Europe is a different beast, and a Brexit shouldn't inspire wholesale dumping of stocks.

"Is a low interest rate environment, brought to you by Brexit fears that literally any rational mind would think pale in comparison to the PIIGS scare in 2011, really worth running to the hills for? I don't think so," Cramer said.

So as fears of Britain slashing ties with Europe drift ashore in the U.S., Cramer reminded investors that this isn't nearly as bad as it has been before. It might feel that way, but it could be a lot worse.

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