As tensions flare between the United States and North Korea, Jim Cramer wanted to give investors some ways to prepare their portfolios in light of a potential nuclear threat.
"Don't bother trying to play the nuclear standoff in North Korea. It's a fool's game. I'm not saying you shouldn't freak out; after all, this is the first time a rogue nation with nukes has flat out threatened to use them on us," the "Mad Money" host said.
While Cramer could imagine a scenario in which the United States takes military action and forces North Korea to surrender, he admitted that he is not the "go-to guy" for those predictions.
"I am a go-to guy, though, on what you should do with your portfolio in the event of thermonuclear war," he said. "Have cash. Have gold."
To be fair, Cramer believes that investors should always have some cash on hand, somewhere between 10 and 20 percent of their total assets.
"Own some gold for the possibility of some sort of calamity, even as I still think an actual nuclear exchange is unlikely," the "Mad Money" host said.
Cramer suggested buying gold in the form of bullion, which should be stored in a bank, the exchange-traded fund for gold called the SPDR Gold Trust, or via shares of Randgold, which
And as dire as the conflict may seem, Cramer pointed out that both Defense Secretary James Mattis and Secretary of State Rex Tillerson were quick to walk back President Donald Trump's fiery statements about retaliating against North Korea.
"At this point, if either side blinks — whether it's us or the North Koreans — we're going to get a rally. I don't want to miss that rally," Cramer said. "With that level of cash and gold, I still think your participation in the post-crisis rally will be just fine if things work out as I hope. And even if we need to live with a nuclear, ICBM-armed North Korea for the rest of Kim Jong Un's lifetime, I think the market can handle it."