Cramer says that investors who hold shares of loss-making companies should sell them

By CNBC Jim Cramer said on Thursday that initial strength in broader market indexes after Federal ReserveThe plans to tighten more quickly, but still gradually do not reflect the fact that many companies are starting to struggle.

“If you are in companies that are losing money, you should sell them,” says Cramer “Squawk Box,” reiterate the theme he revealed during last week’s special live stream “CNBC Investment Club: Jim Cramer’s Game Plan for 2022.”

“I believe next year is the year when you want to own companies that make gadgets, make tangible things, innovate,” Cramer said exactly a week ago. “We don’t want companies that just increase sales but lose huge amounts of money and pay themselves abundantly in cash and, more importantly, stock, while we’re still holding on. “

In an environment where the Fed is accelerating its bond purchases and forecasting three rate hikes next year to combat rising inflation, Cramer said Thursday’s futures don’t reflect what stocks are actually doing.

“Actual stocks, there’s a negative today,” Cramer said before Wall Street opened. He points to the following calls from the software maker Adobe and house builder Lennar that’s “not very good,” and those companies “really missed” estimates of quarterly results.

Adobe and Lennar opened significantly lower when S&P 500 above Thursday trades above last week’s record close. While Dow Jones Industrial Average and Nasdaq also started the session stronger, the initial breakout higher faded. The Dow and Nasdaq rose 1% and more than 2% on Wednesday, respectively, ending the day nearly 1.4% and 3% above the previous month’s record close.

On his Thursday morning Newsletter “CNBC Investment Club”Cramer emphasized that stocks are “more tangible than invisible”. He also repeated a theme from Wednesday night “Mad Money” that this year’s Santa Claus rally could be coming ahead of schedule this year. The Santa Claus rally has historically materialized during the last five trading days of the calendar year and the first two in January.

“We have a Santa Claus and that’s awesome,” Cramer said later on CNBC’s “Squawk on the Street,” after the opening bell. But he warned investors to be careful because Wall Street analysts are downgrading loss-making companies. “You’re fighting the analysts” by holding these stocks, he added. “After a while, I got tired of fighting with analysts.”

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