When will the sale on the stock market end? Jim Cramer told his Bad money viewers on Tuesday should not wait for an end to the pain until Apple (AAPL) has been eliminated from the war on tariffs and trade.
At this time, money managers are flocking to recession stocks, those that are well in the middle of an economic slowdown. That is why we are seeing strong concentrations such as Johnson & Johnson (JNJ), Clorox (CLX) and PepsiCo (PEP). It is also the reason why Verizon (VZ), yes Verizon, is one of the strongest winners in recent weeks.
Cramer explained that money managers have chosen these few select stocks because if Apple becomes a problem in the trade war, then nothing will be safe.
In fact, Apple's decline began the day after Vice President Mike Pence gave his first speech that included a tough conversation against China in early October. Since then, all events have been seen negatively and Apple shares have lost 25% of their value in just two months.
Trading with only 12 times the profits, Apple is incredibly cheap. But Cramer said that until Apple withdraws from commercial wars, owning shares will remain very difficult.
Cramer and the AAP team are analyzing how news about fees is affecting their portfolio. Find out what they are telling members of your investment club and start the conversation with a free trial subscription to Action Alerts PLUS.
Executive Decision: Salesforce
For his "Executive Decision" segment, Cramer welcomed Marc Benioff, president and co-CEO of Salesforce.com (CRM), after the company reported another solid quarter.
Benioff said that Salesforce continues to be the fastest growing business software company of all time and that it continues to grow until 2019 and beyond. He explained that all companies are going through a digital transformation at this time, and each transformation must begin and end with the relationship with the customer.
In the case of Uber, Salesforce is helping the company not only improve relationships with its customers, but also its drivers and the communities they serve. Salesforce also has a great partnership with Apple, and all Salesforce products now run natively on all Apple iPhones and iPads.
Benioff added that for many companies, rebuilding the sales relationship is just the beginning. That's why Salesforce offers applications for sales, customer service, marketing, analysis, application creation, community and more.
Read: Salesforce.com increases in final operations after exceeding estimates
Calling it how it is
If you are the type of investor looking for someone who is always optimistic, Cramer is not your type. "I call them as I see them," Cramer said, and that's why you always get their honest opinion.
Being a permanent bull is not an intelligent investment strategy, Cramer explained, nor is it useful. At this time, the market is at risk of our president and the Federal Reserve doing bad things with respect to rates and interest rates. Cramer said he sees many risks, but not much upward at this time, so he remains cautious.
There have only been three times that Cramer advised selling everything and those times were 1987, 2000 and 2007, all of which were, in effect, the right time to sell.
But that's not where the markets are today, Cramer added. There are many things that can go wrong for actions, he said, that's why they are based on bad news, but not on good news. But once you understand these risks, you can make informed decisions, decisions that will change as the situation changes.
With real money, Cramer says that before the G-20 speech and Jay Powell, we are at an important juncture and he wants people to realize the dangers. Get more of your ideas with a free trial subscription to Real Money.
Out of series
In the "Off The Charts" segment, Cramer consulted with his colleague Mark Sebastian to see which CBOE volatility index, known as VIX, can tell investors where the markets are heading.
Sebastian looked at a daily chart comparing the S & P 500 and the VIX in the last four months. Normally, the pair has an inverse relationship, with increasing volatility as the market falls.
After reaching the peak of October 11 to 29, the VIX reached a lower high on October 24, a signal to Sebastian that a fund was forming. In fact, the S & P bottomed days later and there was a rally of relief, during which the VIX withdrew.
Sebastian noted that there has been very little panic during this last stage of the bear market, as the VIX remained fairly quiet. However, this is not the first time that the market falls without greater volatility.
In February, we saw a similar pattern, with the first leg of the decrease seeing a peak in the VIX, but the second leg of the decline in March came without a peak.
In his "No-Huddle Offense" segment, Cramer highlighted some actions he still likes in this bear market. He said that Five Below (FIVE) is an excellent story of regional and national growth and, although the actions could be affected by the increase in tariffs, it is still a winner.
Canada Goose (GOOS) sold strong today after a secondary offer, but Cramer said the weakness was a gift for an action that rose 99% in the year and still has much more room to run. The Canadian goose has just reported that a monster of 20 cents per share exceeded earnings.
Finally, there is Constellation Brands (STZ), the maker of wines and spirits with shares that have fallen out of favor on Wall Street because investors fear cannabis disruption. Cramer said he is not worried, since Constellation is a fabulous operator, with a stake in Canopy Growth (CGC).
Can all these names remain lower? Of course they can. But Cramer said that if you can endure a little pain in the short term, you will be rewarded with long-term gains.
In Lightning Round, Cramer was optimistic with MongoDB (MDB), Sales (VTR), Analog Devices (ADI), Iridium Communications (IRDM), Citigroup (C), JPMorgan Chase (JPM), Boston Scientific (BSX) and PPL Corp ( PPL).
Cramer was a bear player in Welltower (WELL), Huntington Bancshares (HBAN), Randgold Resources (GOLD) and LKQ Corp (LKQ).
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