Jim Cramer advises investors to take a case-by-case approach to stocks

CNBC’s Jim Cramer said on Wednesday investors should judge stocks individually rather than out of fear of an impending recession, after the Federal Reserve indicated it may begin to take a softer approach to raising interest rates. .

“The Fed appears to be on the sidelines until the next meeting in September — maybe even ahead of the game — with the data starting to follow its path,” the host of “ Mad Money”.

“So let’s take it on a case-by-case basis and I bet that with a softer backdrop, better earnings will be rewarded with higher stock prices, while declines in everything else may finally be more subdued,” he added.

The Fed raised interest rates by 0.75 percentage points on Wednesday in a bid to curb inflation. Chairman Jerome Powell told a press conference that the central bank could raise interest rates an additional 0.75 percentage points in September, but that decision depends on what economic data shows.

All major averages closed for the day, with tech names leading the way after Alphabet and Microsoft missed earnings and revenue but still reported better-than-expected results elsewhere.

Cramer speculated that the Fed would be able to engineer a soft landing by taking a data-driven approach.

“We now know that Powell doesn’t want to cause a recession and doesn’t think he needs to cause a recession, so there’s an advantage for the bulls here, especially because he’s caught up to the curve and he’s may have exceeded it,” he said.

Disclosure: Cramer’s Charitable Trust owns shares of Alphabet and Microsoft.

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