Cramer suggests investors use market weakness as a buying opportunity, ties poor stock performance to high bond yields

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CNBC's Jim Cramer tied the stock market's weakness to the increasing competition offered by U.S. government bonds.

While the additional leg higher in yields has pressured stocks in September, Cramer argued that eventually interest rates will at some point top out after the Federal Reserve tames inflation. That "means you need to buy some stocks here, not sell them," Cramer said.

"Just don't do it all at once. Do it on a scale. Some here. Some lower, because if Treasury yields do go to those levels, you want enough cash left over to buy more stocks," he continued. Cramer suggested investors look for companies that can perform well and turn a profit even in a higher rate environment. To Cramer, investors should be searching for companies like his longtime favorite,"You buy stocks when you're trying to get rich; you buy Treasurys to stay rich," Cramer said. "I think a mix of both is fine, but if you go all bonds now, I now think you're liable to miss something real good in stocks, even as that seems downright impossible.

 

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