Jim Cramer reveals five 'Covid-proof bull markets' to find stock opportunities

  • "If you want to be psychologically prepared for days like today, you've got to have that shopping list because the market throws a sale just when you … least expect it," CNBC's Jim Cramer said.
  • "You can't rummage without a gameplan, too much chance you'll end up buying the wrong thing," the "Mad Money" host said after the Dow Jones declined for the fourth-straight session.
  • "If you're worried stocks will keep getting hammered, be ready to pounce on some of these Covid-proof bull markets," he said.

Don't panic.

That's the message CNBC's Jim Cramer had for investors after the stock market suffered a major drop off for the second time this week.

With global coronavirus cases rising and governments, both domestic and foreign, tightening business restrictions to mitigate the spread, the 30-stock Dow extended its losing streak to four sessions. The last time the index plunged more than 900 points was in April, according to Factset.

Cramer, however, said it is not a "sell everything" moment and advised investors to assemble a buying program in five key areas on the market.

"If you want to be psychologically prepared for days like today, you've got to have that shopping list because the market throws a sale just when you … least expect it," the "Mad Money" host said. "You can't rummage without a gameplan, too much chance you'll end up buying the wrong thing."

The Dow Jones tanked 943, or 3.43%, to 26,519.95. The blue-chip average is down 8% from its October closing high. Both the S&P 500 and Nasdaq Composite indexes also cratered nearly 4% during the session and are off 7% from this month's highs.

"Now, of course, you don't have to do anything here. That's always an option," Cramer said. "You can simply sit tight and wait for a bounce, at which point you might want to sell some stock to raise capital for the next beatdown."

In Chicago, Illinois Gov. Jay Pritzker banned indoor service at bars and restaurants starting Friday. He also put new gathering limits in order after the city has gone through what he described as a "sustained increase" in positive test rates. Restaurants and bars opened for indoor dining there in June at limited capacity.

Across the pond in Europe, Germany and France initiated fresh coronavirus restrictions on businesses intended to slow the transmission rate of Covid-19, the disease caused by the novel coronavirus that can prove deadly.

Cramer said it "feels a little like March" when the market cratered as investors panicked, but suggested viewers be prepared to find buying opportunities in the following bull markets.

"If you're worried stocks will keep getting hammered, be ready to pounce on some of these Covid-proof bull markets," he said.

5G

  • Marvell Technology
  • Broadcom
  • Qualcomm

Digitization

  • Microsoft

Hygiene

  • Procter & Gamble
  • Clorox
  • L Brands

Home renovation

  • Masco
  • Home Depot
  • Lowe's
  • Walmart

Autos

  • Ford
  • Tesla
  • Lithia Motors

Disclosure: Cramer's charitable trust owns shares of Broadcom, Marvell Technology and Microsoft,.

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