Mad Money

Cramer points to the market's 'endless buying opportunities' as stocks slide on trade war worries

Key Points
  • The market's downward swings present "endless" chances to buy high-quality stocks, CNBC's Jim Cramer says.
  • But investors who can't handle volatility should steer clear of stock-picking, the "Mad Money" host argues.
Market's 'endless buying opportunities' as stocks slide
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Market's 'endless buying opportunities' as stocks slide

As refreshed trade-related concerns drove stocks lower on Wednesday, all CNBC's  could see were "endless buying opportunities."

"We saw the banks get slaughtered when rates were going lower," the "Mad Money" host said. "Now rates are going higher again — and the Fed signaled today that they're going to keep rising — the banks are superb investments."

The retail stocks also became somewhat "hated" on Wednesday as sellers took to the sector on worries that business isn't as strong as it seems.

But, as illustrated by his comments on Tuesday, Cramer wasn't buying it.

"I think the last three months are the least important months of the year for retail, and I do believe that back-to-school will be quite robust," he told investors. "That means you'll have a lot places to win."

Cramer added that he thought the retailers would remain safe investments despite the Trump administration's announcement that it is considering a 25 percent tariff on $200 billion worth of Chinese imports.

"I know there are concerns about the new tariffs if they're put in place. Won't they hurt retailers? I'm not as worried as many others because I see them moving private-label apparel business out of the People's Republic for manufacturing into other countries," he said. "I suggest you use this weakness to buy those stocks."

And when it comes to the industrial stocks, many of which have undergone drastic swings on every conflicting piece of tariff news, the "Mad Money" host advised that only hardened investors should take on the volatility.

"All I can say is that you shouldn't own these industrials unless you think that we're going to win the trade war relatively soon," he said. "I think we will, as long as people remember that winning doesn't necessarily mean that China has to lose. I think it just means that we get to win as much as they do."

All things considered, investors who can't handle volatility — or stay focused enough to use weakness as a chance to buy — should probably stay away from stock-picking for the time being, Cramer said.

"If you can't deal with the volatility, if you can't use the panic attacks to buy, go all index funds, will ya? Because the moves will only be exacerbated until the Chinese blink, and then you'll catch a move that could be extraordinarily bullish," he concluded. "But until that happens, the forecast remains delicious pleasure followed by maximum pain."

WATCH: Cramer unpacks the market's big swings

Cramer points to the market's 'endless buying opportunities' as stocks slide on trade war worries
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Cramer points to the market's 'endless buying opportunities' as stocks slide on trade war worries

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