^{CNBC’s Mad Money, Jim Cramer | The Street}

In a dramatic turn, major U.S. stock indices experienced significant declines on Thursday:​

• Dow Jones Industrial Average (DIA): fell nearly 4%, closing at 405.22 USD.​
• S&P 500 (SPY): dropped 4.8%, ending at 536.70 USD.​
• Nasdaq Composite (QQQ): plunged almost 6%, settling at 450.66 USD.​
• Russell 2000 (IWM): declined by 6.4%, reaching 189.65 USD.​

This market upheaval was largely driven by the technology and consumer discretionary sectors, following President Donald Trump's announcement of new tariffs. Amidst this volatility, CNBC's Jim Cramer advises investors to draw lessons from the aftermath of the 2000 dot-com bubble.​

Strategic Investment Criteria

Cramer emphasizes the importance of focusing on companies that exhibit:​

• Domestic Operations: Businesses primarily operating within the U.S. are less exposed to international trade tensions.​
• Pricing Power: Companies capable of maintaining or increasing prices without significantly reducing demand.​
• Steady Demand: Firms with products or services that remain essential, even during economic slowdowns.​
• Minimal Credit Risk: Organizations with strong balance sheets and low debt levels, reducing financial vulnerabilities.​

Cramer encapsulates this approach: "You want stocks of domestic companies with pricing power and with no slackening in demand or credit risk that do well in a slowdown."​

Sectors and Stocks to Consider

Based on these criteria, Cramer identifies several sectors and representative companies:​

Healthcare Sector

Known for its resilience during economic downturns, the healthcare sector offers:​

• Cardinal Health (CAH): A leading drug distributor ensuring consistent medication supply.​
• Bristol-Myers Squibb (BMY): A pharmaceutical giant with a robust pipeline of essential medications.​
• UnitedHealth Group (UNH): A diversified health insurer with a strong market presence.​

Utilities

Providing essential services, utility companies tend to have stable revenues:​

• Duke Energy (DUK): A major electric power holding company serving millions of customers.​

Consumer Staples and Retail

Companies offering everyday products and affordable retail options remain in demand:​

• Procter & Gamble (PG): A multinational consumer goods corporation with a diverse product portfolio.​
• TJX Companies (TJX): An off-price retailer offering discounted brand-name apparel and home goods.​

Telecommunications

As communication remains vital, telecom companies can provide stability:​

• AT&T (T): A telecommunications leader offering a range of services.​

Financial Technology and Real Estate

Companies with minimal credit risk in these sectors are also appealing:​

• Intercontinental Exchange (ICE): An operator of global exchanges and clearing houses.​
• Ventas (VTR): A real estate investment trust focusing on healthcare properties.​

Potential Beneficiaries of Tariffs

Cramer also notes that certain defense contractors might gain from the current tariff environment:​

• Boeing (BA): Aerospace leader potentially benefiting from increased defense spending.​
• Lockheed Martin (LMT): A major defense contractor with a broad portfolio of military products.​

These companies could see growth if nations seek to strengthen defense ties with the U.S.​

Historical Context and Investor Sentiment

Reflecting on the post-dot-com bubble era, Cramer acknowledges the challenge of shifting focus away from high-flying tech stocks:​

"I know that there’s nothing more exciting to invest in than tech, and tech will have its chance again in the future," he states. However, he underscores the importance of adapting strategies in response to current market dynamics.​

Investors are encouraged to remain patient and disciplined, recognizing that market cycles evolve and that opportunities arise in various sectors over time.​

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In light of recent market volatility, revisiting investment strategies that proved effective after the dot-com bubble may offer a prudent path forward. By focusing on companies with strong fundamentals, domestic operations, and resilience during economic slowdowns, investors can better navigate the current financial landscape.

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