Cramer: As Fed ponders, how do you profit?

(Click for video linked to a searchable transcript of this Mad Money segment)

It seems the market is hanging on every word uttered by the Fed. And on Wednesday the Fed said interest rates will hold near zero and that they will continue buying $85 billion in bonds.

You could almost hear a collective 'phew' on Wall Street after the central bank released the statement.

"Right now there's a vast perception that we can't buy stocks because the Federal Reserve at any moment might take away its magic carpet and every stock will fall out of the sky, causing chaos and ruin," said Cramer.

If you're among those investors on pins and needles, Cramer thinks you're making a terrible mistake.

Ben Bernanke, chairman of the Federal Reserve.
Getty Images
Ben Bernanke, chairman of the Federal Reserve.

"All week, no, make that all month, no, all year, people who have been paralyzed by fear of Fed tapering have missed gains," reminded the Mad Money host.

Instead, investors who have done homework and identified individual companies with dynamic management teams, strong profit margins, solid balance sheets and aggressive business strategies have done well. "That's who is profiting in this market," Cramer explained.

And the Mad Money host believes that kind of strategic buying will remain an effective way to make money for some time to come.

That's not to say he doesn't think the market will decline if and when the Fed begins tapering. It's just that he believes the economy is getting strong enough that after a pullback he expects a subsequent rally.

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Therefore, he thinks stocks that are climbing in these early stages of recovery should continue to rally as the Fed steps back.

"As July draws to a close, the fact is that it's been one of the most bullish months of 2013. And once again, the win belongs to those who were in the arena, not out of it. I bet the rest of 2013 will be no different. Stick with what's working."

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