It may feel like the stock market is collapsing, but investors would be better served to "sit tight" and wait for a bounce rather than selling stocks at their lows, CNBC's Jim Cramer said Thursday after a brutal day for the major averages.
"Here's the problem: we had a lot of companies report and they had one little thing wrong and they just got crushed, so the market's being too picky," Cramer, host of "Mad Money," explained in a fireside chat with callers.
But the sell-off, which was exacerbated by the Federal Reserve's interest rate hike on Wednesday, will eventually end and create a better selling opportunity for the risk-averse, he said.
"If it's got a good balance sheet and good prospects and Jay [Powell] comes to his senses, you're going to say, 'Why didn't I buy some?' And that's why we're positioning for the club to doing a little buying," he said, referring to his charitable trust, ActionAlertsPlus.com. "We're not selling down here. It's too late. It may be too early to buy, but it's too late to just start [selling]. Wait for a bounce."
Click here to watch Cramer's fireside chat and hear more about his take on the current market moment.