Use the downturn in the market to upgrade your portfolio, says Jim Cramer

CNBC’s Jim Cramer on Monday said investors willing to challenge the current market should switch their unprofitable holdings for stocks that have better-than-average economic valuations and growth rates.

“I’m not advocating staying in the market, as much as I want you to take some losses and trade in better stocks that can come back because their losses are just collateral damage. … The ones who can do things, send your money back to you. ,” the “crazy money“said the host.

“I say you now put some money to work in tangible stocks, growing at a reasonable price. … As for the previous high flyers, if you still own them, I recommend that you sell them with a snapback and upgrade the your wallet into something that is better suited to this difficult time, “he added.

The shares plummeted on Monday, with the Dow Jones Industrial Average down 1.99% while the Nasdaq Composite fell 4.29%. The S&P 500 was down 3.2%, dipping below 4,000 for the first time in more than a year.

“When [the markets] take out the last of the leaders… in this case oil and gas stocks, that usually means we’re much closer to the bottom than the top, ”Cramer said.

He added that while there are different types of sellers whose business is currently shaking the market, sales by companies and their shareholders who have been forced out of their shares offer investors opportunities to raise shares of previously expensive shares to low prices .

“You have to see this as a blessing, not a curse, if you have cash. These forced sellers put pressure on the whole market, so you can take advantage of it to get some great deals. … You can get to your preferred levels much faster thanks to these sellers because they are creating great value, “he said.

Cramer also warned investors to steer clear of speculative stocks and cryptocurrencies.