There’s a lot more to investing than just watching the Federal Reserve, Jim Cramer reminded his Mad Money viewers Monday. Making investment decisions based on the Fed alone is a fool’s game, Cramer said, especially since Fed chair Jay Powell has learned from last year’s mistakes.
Cramer said there’s no need to play the Fed guessing game, because from now on, the Fed will be using common sense, raising rates when the economy strengthens and cutting them when weakness dictates. Investors need to get back to choosing stocks based on earnings and fundamentals.
Case in point: PepsiCo (PEP – Get Report) , which reports later this week. Shares of PepsiCo are up 20% for the year and now trade at 24 times earnings. Cramer said that’s more expensive than the average stock, but Pepsi has growth and yields 2.9%, making it worth the price. Investors should pay