You have to build a list and decide what you can own and live with, says Jim Cramer

Key Concepts:

• Stock selection in a volatile market
• Risk assessment based on geopolitical factors
• Impact of presidential actions on international business
• Short-term vs. long-term investment strategies

Stock Selection in a Dicey Market

The core argument is that stock selection in the current market requires a rigorous risk assessment process. Investors need to create a list of "livable" and "unlivable" stocks, acknowledging the market's volatility and the need to be "a slave to this crazy market" to potentially profit. The speaker emphasizes that this approach is for those actively trying to capitalize on short-term opportunities, not for long-term investors who can tolerate short-term losses.

The Geopolitical Gantlet: Foreign Exposure

Before investing, the speaker outlines a "gantlet" of considerations. The first hurdle is assessing a company's exposure to foreign countries. The concern extends beyond China, as "any country could at any time find itself on the president's bad side." The consequence of this is severe: "any American company doing real business there [in a country on the president's bad side] finished." This highlights the significant risk associated with international operations due to potential political instability and presidential actions.