CNBC's Jim Cramer said Monday he doesn't think the U.S. is doomed for a recession, but the market is feeling the weight of those fears in the short-term.
Earlier in the day, Bank of America said that there was a higher chance than previously thought that the economy would see a deep decline in general activity in the next year, linked to the impact of the U.S.-China trade war and global economic slowdown.
The economy is "all about confidence" and when that sentiment is lost, it can cause a lot of pain on the market, Cramer said.
"Over a longer time-frame, I think I'll be proven right about the economy, but for now the day-to-day action is going to favor the slowdown stocks and wreak havoc for the industrials, the technology stocks, and worst of all the financials" Cramer went on to lay out four areas that investors could place their money in the uncertain market, including gold, safe dividend stocks, staples and retailers that have large scale.
In the gold sector, the host said the asset works in a low interest rate environment as "insurance against economic chaos."
Cramer said "classic slowdown stocks" like Campbell Soup, Kellogg and Coca-Cola can continue to perform, along with drug names like Merck and Bristol-Myers.
The stocks that make up his WATCH group — Walmart, Amazon, Target, Costco and Home Depot — are actually more safe than most think from the trade war because of their scale, Cramer added.