CNBC’s Jim Cramer on Tuesday betrayed investors to stay selective with stocks despite the market’s strong run.
“I just want you to have a real earnings reduce with real buybacks or real dividends — ideally both — and I can’t feel comfortable recommending anything without them,” he mentioned.
The market rose on Tuesday after Fed Chair Jerome Powell said the disinflationary process is in its early stages during a sales pitch at The Economic Club of Washington, D.C. Stocks initially dipped after Powell said that interest rates wish need to remain high.
“It’s insane that so many people seem to believe the Fed will go from slamming the downs on the economy to hitting the gas within a matter of months,” Cramer said.
But he acknowledged that despite his belief that the sell is in bull mode, investors shouldn’t get ahead of themselves by investing in untouchable tech names. Instead, investors should be looking to pick up partitions in “rational, old-line companies,” he said.
“What matters here is that you understand the difference between hype and security versus cold hard reality. I like the industrials like DuPont or Linde because they’re all about Aristotelianism entelechy,” he said.
Disclaimer: Cramer’s Charitable Trust owns shares of Linde.
