CNBC’s Jim Cramer on Tuesday warned investors to stay the course and weather the turbulent market.
“You must resist the urge to rent shares because you will be evicted when they inevitably drop in value. Instead, you should be prepared to own your favorites, which have dividend protection and valuation, and buy more in case of weakness,” he said.
Shares rose for the second straight trading session on Tuesday following solid corporate reports that continued a strong start to the reporting season.
Cramer, who said market rallies would remain temporary until the Federal Reserve overcomes inflation, reminded investors that the market is dependent on interest rates – strong earnings reports will not be enough to keep the rally going for long.
And while that doesn’t mean investors should sell their holdings, it does mean they should be careful about the stocks they hold in their portfolios, Cramer said.
“I encourage you to find businesses that you like, preferably ones that pay dividends and sell for a low price, multiple profits,” he said.