How Jim Cramer navigates a market selloff

Core Viewpoint - The article emphasizes using market declines as buying opportunities, highlighting that major indexes rebounded after a down session, particularly following significant losses in tech stocks like Palantir [1][2]. Market Analysis - Major indexes experienced a decline on Tuesday, primarily driven by an 8% drop in Palantir and other artificial intelligence stocks, raising concerns over inflated valuations in the tech sector [2]. - Despite Palantir's strong earnings report and positive guidance, its stock suffered due to the broader market's negative sentiment [2]. Investment Recommendations - Cramer advises investors to identify stocks that have recently reported strong quarterly results but have seen their prices drop due to market-wide declines, suggesting a gradual approach to buying rather than investing all at once [3][5]. - Two specific companies recommended for purchase during market weakness are Shopify and McDonald's. Shopify's stock decline is attributed to the overall market downturn rather than business issues, with management anticipating a robust holiday season [4]. - Cramer views McDonald's earnings miss as understandable given the challenging environment for the restaurant industry, noting the company's significant scale and efforts to reduce prices amid weakening consumer spending [4].