Don’t lose sight of investing fundamentals despite bull market

CNBC’s Jim Cramer on Tuesday told investors to stay selective with stocks despite the market’s strong run.

“I just want you to have a real earnings cushion with real buybacks or real dividends — ideally both — and I can’t feel comfortable recommending anything without them,” he said.

The market rose on Tuesday after Fed Chair Jerome Powell said the disinflationary process is in its early stages during a speech at The Economic Club of Washington, D.C. Stocks initially dipped after Powell said that interest rates will need to remain high. 

“It’s insane that so many people seem to believe the Fed will go from slamming the brakes on the economy to hitting the gas within a matter of months,” Cramer said.

But he acknowledged that despite his belief that the market 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 shares in “rational, old-line companies,” he said.

“What matters here is that you understand the difference between hype and hope versus cold hard reality. I like the industrials like DuPont or Linde because they’re all about reality,” he said.

Disclaimer: Cramer’s Charitable Trust owns shares of Linde.