“When the Fed gets out of the way, you have a real window and you’ve got to jump through it. … When a recession comes, the Fed has the good sense to stop raising rates,” the “Mad Money” host said. “And that pause means you’ve got to buy stocks.”
“I think that window has finally arrived, and you don’t want to close it on yourself,” he added.
Stocks rose on Thursday despite the latest GDP data showing that U.S. economic growth fell for the second consecutive quarter, according to the Bureau of Economic Analysis. The major indices dipped briefly earlier in the day after investors balked at the possibility of a recession but recovered later.
Thursday marks the second back-to-back day of gains. The market rallied on Wednesday after the Federal Reserve raised interest rates by 0.75 percentage point and indicated it could take a softer approach with future rate hikes.
Cramer acknowledged that some stocks, like those of homebuilders, will likely suffer due to higher interest rates. He also noted that retailers suggest Walmart and Target still face an inventory glut that is a headwind to their business.
However, that doesn’t mean investors should stop buying, according to Cramer.
“This is an inventory glut recession, not a layoff recession, and that means you can buy stocks if there’s nothing else bad from the Fed and/or from Washington,” he said.
Disclosure: Cramer’s Charitable Trust owns shares of Walmart.
Read More: Jim Cramer warns investors not to miss their window to buy stocks