Own companies that are ‘built to last’ instead of worrying about the Fed, Cramer says

Investors should stop worrying about the Federal Reserve‘s moves and focus on maintaining a portfolio of strong companies instead, CNBC’s Jim Cramer said Wednesday.

“You don’t need to parse every single word from the Fed if you’re buying stocks of good companies that are built to last, because these are the same companies that are suffering from the ever-higher raw costs. [Fed Chair Jerome] Powell is tightening in order to help them, as well as you,” the “Mad Money” host said.

“I think [watching the Fed’s moves is] very important if you’re trading bonds, but most of you aren’t. It’s very important if you’re borrowing money to buy stocks. That’s not something you should be doing in the first place, and after today it’s even dumber than it was,” he added.

Cramer’s comments came on the heels of a market rally Wednesday prompted by the Fed raising rates by 0.25 percentage point. The central bank also forecast six more hikes this year. The Dow Jones Industrial Average gained 1.5% while the S&P 500 rose 2.2%. The Nasdaq Composite increased 3.7%.

The 10-year Treasury yield reached its highest point since pre-pandemic levels after the Fed’s statement.

Cramer previously advised investors to look for the leading companies in a particular industry and invest in businesses that make money and tangible products. He stuck to these sentiments of investing in profitable companies, advising investors to turn their attention away from following Fed policy to more productive activities.

“The players of the rate-hike parlor game, I got ideas for them … maybe they could spend hours upon hours filling out their March Madness brackets — a much better use of their time,” Cramer said.

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