Jim Cramer urged investors to stay away from cryptocurrencies and other risky assets

CNBC Mad Money host and well-known investor Jim Cramer believes that the Fed will continue to tighten monetary policy, so risky assets, including cryptocurrencies, will remain under pressure.

Jim Cramer urged investors to stay away from speculative assets as he expects markets to continue to decline. The investor bases his opinion on the recent statement by the head of the Fed in Jackson Hole, where Jerome Powell announced the Fed’s efforts to reduce inflation. Powell noted that these actions could “hurt” American businesses and residents. After that, US stock indices began to fall.

“Fed Chairman Jerome Powell said we need to stop doing stupid things with our money. That was the gist of his Friday speech. He will “pain” until he puts an end to gambling in the market. Of course, this can also hurt good investments, but we will not see the end of this process until there is a global sell-off in speculative assets,” the Mad Money host emphasized.

Kramer noted that his warning applies not only to cryptocurrencies, but also to other risky assets, including a large part of the shares of commercial companies. Cramer also said that he no longer sees bitcoin as an asset to hedge inflation and save money. In his opinion, BTC is just another speculative asset.

“This is what happens when the Fed gets serious. And you have to get through it without loss. Don’t invest in meme companies. Do not invest in stocks of firms that have entered the market through reverse takeovers. Do not invest in cryptocurrencies. And you will pass this stage and be in a great position when the market is oversold and ready to bounce,” advised the former hedge fund manager.

Kramer has previously said that the Fed doesn’t really care as much about inflation as it does about the popularity of cryptocurrencies, and the agency is trying to “destroy” them.