Last week’s rally is a reminder to watch for a bounce during market downturns, according to Jim Cramer.

The stock market’s recovery last week is proof that investors should always be on the lookout for a rebound, even when things seem hopeless, CNBC’s Jim Cramer said Monday.

“The most important lesson from last week is that you should never get too negative, because once a market gets oversold, it doesn’t take much good news to trigger an explosive rebound,” Cramer said.

“When the whole market is roaring, you have to admit that not everyone has the same resilience. Many oppressed groups have made a comeback thanks in part to short coverage… but some other groups appear to be much more resilient,” he added.

The Mad Money host said he believes “consumer discretionary stocks” like Macy’s and companies in the travel sector, including Delta Air Lines and American Express, will stand to gain.

Cramer’s comments came after last week’s monstrous rallies as investors digested news of the Russo-Ukrainian war, a quarter-point increase in interest rates by the Federal Reserve, and Covid outbreaks in Russia and China. All major indices ended their best week since November 2020 on Friday, with the S&P, 500 and Nasdaq rising for four consecutive days, while the Dow Jones Industrial Average was rising for five days.

Markets faltered on Monday after Fed Chairman Jerome Powell said the Fed could go for more aggressive rate hikes before the end of the year if needed to fight rising inflation.

Cramer said that while investors should be careful about choosing stocks with “stamina,” his general stance on holding shares in only profitable firms has not changed.

“While the last week has given you an amazing opportunity to make a difference, it hasn’t changed my core message…Stick with profitable companies with real products or real services, especially those that return capital to their shareholders,” he said.

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