Jim Cramer was not selling stocks in Tuesday's wreckage. Here is why he stood firm

CNBC's Jim Cramer said helium was not marching successful the parade of sellers Tuesday, arsenic the large U.S. banal indexes connected Tuesday recorded their worst one-day drop-off since June 2020.

"Look, I cannot blasted anyone for panicking aft we got inactive 1 much red-hot user terms scale number, showing that non-commodity ostentation has yet to peak," the "Mad Money" big said, acknowledging it was a "horrendous time nary substance however you portion it."

However, Cramer said investors seldom marque omniscient decisions erstwhile they panic, truthful it's important for semipermanent investors to support their absorption connected the large representation connected a time similar Tuesday, erstwhile lone 5 stocks successful the S&P 500 finished successful affirmative territory.

"I'm not saying you request to bargain thing present yet," Cramer said, noting his Charitable Trust, the portfolio utilized by the CNBC Investing Club, bought conscionable 1 banal amid the wreckage. "We cognize a bounce whitethorn not straight beryllium successful the offing," helium added. "But the bottommost line? We definite weren't selling."

Cramer said the crushed helium didn't merchantability rests successful his content that the marketplace entered Tuesday's league successful a no-win position. On the 1 hand, helium said helium thinks bearish investors overreacted to August's CPI report, stressing it was lone somewhat worse than statement estimates adjacent though it apt guarantees a third-straight assertive involvement complaint hike from the Federal Reserve adjacent week.

At the aforesaid time, Cramer said if the ostentation information had, hypothetically, travel successful somewhat amended than expected, bearish investors would've recovered a mode to rotation the communicative toward a absorption connected whether the Fed was being excessively assertive with terms pressures already easing.

Cramer said he's choosing to look past that "false dichotomy." Instead, helium said helium believes that adjacent aft the August CPI study it remains imaginable for the U.S. cardinal slope to "thread the needle" and rise involvement rates to power ostentation without sending the system into a downturn akin to the Great Recession. "This is not 2007 oregon 2008," helium said.