Jim Cramer's 'Stop Trading!': Invest Abroad

Invest in foreign markets on dips, Jim Cramer said on CNBC's "Stop Trading!" segment Tuesday.

The weakness in the U.S. is leaking into the world economy, Cramer said. "We're bringing other people down today."

Cramer noted that the European services number was disappointing and that Petroleo Brasileiro (PBR - Cramer's Take - Stockpickr) "is down horribly."
The selloff isn't world-ending, though. "We have been up very big. ... This is day two of a selloff.

We probably get another couple, and then we refresh again."
For buy-and-hold investors, this turbulent market is going to be very tough, Cramer said. "Buy and hold Monsanto (MON - Cramer's Take - Stockpickr)? You can't do it. Buy and hold Deere (DE - Cramer's Take - Stockpickr)? You can't do it."

The difficult domestic environment has Cramer looking abroad. "On the selloffs I want to buy foreign more than domestic. ... When you get a decline in Europe, I would buy the decline."
To alleviate trouble in the U.S., Cramer continued to urge the Federal Reserve to cut rates. "We need to get the banks so that they can buy ... they've got to be paying depositors 2%, then take the deposits they get and put it in the 4-year. ... The Treasury is saying to me they have to cut and they're not done. That's why I'm bullish."

"We are in a place when you absolutely cannot be in cash," Cramer told investors. He compared the environment to the wild markets of 1990, 1991, and 1998. "It's so pat, and you have to go to these early cycle stocks." He advised that investors avoid tech, citing poor quarters from Apple (AAPL - Cramer's Take - Stockpickr) and Google (GOOG - Cramer's Take - Stockpickr) and uncertainty for Research In Motion (RIMM - Cramer's Take - Stockpickr).

"You have to buy early cycle," Cramer stressed.