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Stick to “boring” stocks to get out of the cratering market

CNBC’s Jim Cramer said on Monday that investors should be in stable and boring stocks to keep their portfolios strong as inflation concerns ripple the market.

“If you’ve followed me and bought common stock of companies that make real things and do real things that earn capital and trade at a reasonable valuation, you’re doing relatively well,” the host of ” Mad Money”.

“The problem is those stocks that drop less…they’re really boring,” he added.

Cramer’s comments come after a horrific day in the market, which was driven by recession fears ahead of this week’s Federal Reserve meeting. The S&P 500 fell to its lowest level since March of last year and closed in bearish territory. The Dow Jones Industrial Average and the Nasdaq Composite also fell, compounding this year’s selloff.

“Even though it goes against all instinct, when the market craters like this, you shouldn’t be thinking about what to sell, but what to buy,” Cramer said.

He reminded investors that this is a market investors need to focus on to avoid losing money. Unfortunately, the most investable stocks to achieve this goal are boring stocks, Cramer said.

“I’m prepared to make an exception for a few growth stocks that are being beaten at ridiculously cheap levels on a price-earnings basis…but there aren’t many,” he warned, adding that the Dow has many recession stocks while the Nasdaq has very few.

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