Stocks are selling off significantly for the first time in a while, so to stem the panic, Jim Cramer decided to go over his rules for how investors should act on a down day.
Cramer has been saying for a month that until President Donald Trump and Congress come to terms, investors should not count on tax reform or infrastructure stimulus.
Now, with Trump tied up in the Comey-Flynn fiasco, there is even less hope in the market for the benefits of his pro-business agenda.
"People are starting to worry that this political morass could hurt the economy, especially since many stocks, like the banks, are up because investors expect the Federal Reserve will keep raising interest rates," Cramer said.
The potential for long term scandal in the White House could lead to slower economic growth, which leads to the Fed pausing its rate hikes, which leads to bank and transport stocks getting pummeled.
"So, the financials are at the epicenter of this downturn, and Cramer's rule No. 1 is stay away, at all times, from the blast zone," Cramer said.
However, there are some beneficiaries to that hypothetical scenario. It would cause the dollar to weaken, meaning recession-proof companies with large dividends and good fundamentals, like PepsiCo, which ticked up on Wednesday, would get their days in the sun, Cramer said.
"So, rule No. 2 in a selloff: in a selloff that's created specifically by an impression that there's a slowing economy, look for the best-yielding secular growth stocks. Those are magnets for money," Cramer advised.