Kramer says Wednesday's relief rally won't beat the bears and expects Fed skeptics to persist

Jim Kramer said Wednesday that he is still "interested in stock holdings" even as the Federal Reserve aggressively raises interest rates, leading some skeptics to believe this will send the US economy into recession.

"They probably sold out in today's rally. They'll be sold out again tomorrow because they were," said host Mad Money, referring to a spike late in the Wall Street session where the S&P 500 and Dow Jones Industrial Average reported their most significant daily gains in years. 2020

Stocks rose by half a percentage point in response to a widely expected Fed rate hike, and President Jerome Powell ruled out any future 75 basis point hikes.

The intensity and breadth of the rally following Wednesday's announcement suggest some investors believe the Fed can stem inflation with tighter policies without causing a significant economic downturn. However, Kramer said he thought Wednesday's recovery rally would not sway the Fed's vocal skepticism.

He acknowledged uncertainty about the eventual impact of a 50 basis point hike by the Fed. Before Wednesday, the US Federal Reserve raised interest rates by half a percentage point in one meeting for the last time in 2000.

"So again, starting tomorrow, we're going to be preparing for the worst and expecting the worst ... and while the money managers aren't sure what it is, they're going to continue selling stuff they shouldn't be," he told Kramer. "But if you are in my camp, you are interested in having a stake here because many companies can do well even if the bear camp is right."

Kramer pointed to the broad individual, and sector companies he believes can operate from here given the economic outlook. For example, he says he likes Advanced Micro Devices, which have struggled so far this year but are just seeing solid gains and direction.

The finances are also sound, he said. "Remember, if the Fed raises short-term interest rates, the bank immediately becomes more profitable," said Kramer, whose charity owns two banks: Wells Fargo and Morgan Stanley. He refers to the net interest income banks earn on loans after deducting what they pay customers on their deposits.