Just don't have tariffed-materials exposure and don't have China exposure.
That's the game plan for veteran trader and RealMoney contributor Sarge Guilfoyle.
Trump threatened 10% to to 25% additional tariffs on August 1 on apparel, toy and electronic goods coming into the U.S. from China.
When stocks sold off, a few big tech names that don't have much cost exposure in China got sold off as well.
"I like the FAANG (Facebook , Apple , Amazon , Netflix , Google ) names because they have very, they have no exposure to China.
They're not even allowed to compete in China," Guilfoyle said.
Apple is vulnerable to tariffs from a cost perspective, but the others are not.
They've all sold off since August 1, the day Trump threatened additional tariffs.
"I'd rather have Disney than Netflix," Guilfoyle added.
Netflix's most recent earnings report showed a large total net subscriber adds miss, as Disney ramps up its own streaming and direct-to-consumer media platforms, including a bundled service.
Elsewhere, "You might find discounts among the Adobe's ," Guilfyole said.
Adobe was at above $300 a share a week ago, before dropping to $280.
It has, indeed rebounded to $296.
Facebook, Amazon, Apple, Disney and Google are holdings in Jim Cramer's Action Alerts PLUS member club.
Want to be alerted before Jim Cramer buys or sells those?
Learn more now.
Premium Pick: Jim Cramer: Fear Not These False Market Fears Ready to Retire: The Biggest Threat to Your Retirement?
Check Your Basement TheStreet Feature: Here's Something Investors May Be Missing About the Drone Revolution Dog Days of Summer: Why Investors May Be Seeing the End of the Dog Days of Summer Catch Up: Today's Top News Videos Below