Don’t ‘rent’ stocks in this treacherous market, Jim Cramer warns

CNBC’s Jim Cramer on Tuesday warned investors to stay the course and weather the turbulent market.

“You have to resist the urge to rent stocks because you’ll get evicted when they inevitably decline in price. Instead, you should be willing to own your favorites that have dividend and valuation protection, and buy more into weakness,” he said.

Stocks rallied for a second consecutive trading session on Tuesday on the heels of solid corporate earnings that continued the earnings season’s strong start.

Cramer, who has said that market rallies will remain temporary until the Federal Reserve beats inflation, reminded investors that the market is beholden to interest rates — strong earnings reports won’t be enough to keep a rally going for long.

And while that doesn’t mean investors should sell off their holdings, it does mean they have to be careful about the stocks they keep in their portfolios, according to Cramer.

“I encourage you to find businesses you like, preferably ones with dividends that sell at inexpensive price-to-earnings multiples,” he said.