CNBC's Jim Cramer on Thursday said he knows Wall Street is anxiously waiting for Federal Reserve Chair Jerome Powell's Friday speech in Jackson Hole, Wyoming, where he is expected to signal whether interest rates will remain high.
Powell's speech last year at this time sent stocks plummeting, and Cramer said it might be similar this time around. Cramer feels that Powell is likely not finished tightening, and he advised investors to hold on to good companies while being prepared for the pain.
"I think Powell's goal is to create an environment where, if you wait, things will ultimately get cheaper, and because we aren't there yet, he's not done slamming the brakes on the economy," Cramer said.
"Then next year, he can declare victory in the war against inflation, which would be a huge win for the stock market, but you have to anticipate that. You have to take some pain now to get the gain later," he said.
Cramer noted that many investors may be inclined to sell everything off and take "profits in the mega caps out of fear." But for the CNBC Investing Club Charitable Trust, Cramer said he's keeping certain stocks he believes have a strong future outside of Friday's potential losses, namely Apple and Nvidia, and thinking about how to get good companies at a discount.
"We think Powell's speech from on high just might be our chance to get into the stocks of our favorite stocks and get a little more exposure to the broader economy," Cramer said. "Meaning the stocks might get hit tomorrow, but their businesses will do just fine regardless of what the Fed actually does."
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Disclaimer The CNBC Investing Club Charitable Trust holds shares of Apple and Nvidia.
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