Don’t lose sight of the fundamentals of investing despite the bull market

CNBC’s Jim Cramer on Tuesday told investors to remain selective on stocks despite the market’s strong gains.

“I just want you to have a real profit cushion with real buyouts or real dividends – ideally both – and I can’t recommend anything without them,” he said.

The market rallied on Tuesday after Fed Chairman Jerome Powell said disinflation was in its early stages during a speech at the Washington, DC Economics Club. Shares initially fell after Powell said interest rates should remain high.

“It’s crazy that so many people believe the Fed will go from putting a brake on the economy to hitting the gas in a matter of months,” Cramer said.

But he acknowledged that despite his belief that the market is in bullish mode, investors should not get ahead of themselves by investing in untouchable tech names. Instead, investors should be looking to buy shares in “smart, old companies,” he said.

“The important thing here is that you understand the difference between hype and hope and cold hard reality. dupont or Linde because they are all about reality,” he said.

Disclaimer: Cramer’s Charitable Trust holds shares in Linde.