Federal Reserve Chair Jerome Powell testified before Congress June 21, reiterating the Fed's intention to bring inflation down to its goal of 2%. Amid Powell's indication that future rate hikes might be on their way, U.S. stocks fell for the third day in a row.
The Nasdaq finished the day down 1.35%, the S&P 500 was down .52% and the Dow Jones Industrial Average was down .3%.
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What this current selloff means for investors, according to Jim Cramer, is that they should do nothing.
"I think we're currently in no-mans-land right now; not high enough to justify making more sales, but certainly not low enough to justify buying anything, because I want to wait for a better opportunity," Cramer, the host of CNBC's "Mad Money" said. "And we can wait. The market edge oscillator I follow is still slightly overbought, and I'm in no hurry to take that newly raised cash off the sidelines until we actually get oversold."
Acknowledging the strange dichotomy of saying a stock is a great pick, yet still encouraging people not to make any purchases just yet, Cramer said that sometimes the hardest thing an investor can do is wait.
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"I recommend sitting on your hands right now. Even as I understand the compulsion to do something at times like these when we watch the stocks of so many good companies go down," Cramer said. "Bulls make money, bears make money, but hogs get slaughtered."
Even though Cramer's beloved "Magnificent Seven" fell slightly, he maintained his recommendation to wait.
"Many times the hardest thing to do is also the best way to make a lot of money," he said.
