“Don’t go chasing the high and lows. Look for a good company that has some good fundamentals. If you find that, put yourself on the sidelines and wait for a big rally,” he said.
“Look for a company that will surprise you,” he warned.
Cramer said that companies with low fixed overhead costs and low expenses should be good candidates to make a run at the dividend yield that has been climbing in the market.
There are several high-flying tech stocks and several well-known companies that can give investors a boost.
Apple (AAPL), Alphabet (GOOG), Facebook (FB) and Netflix (NFLX) could be undervalued, but the stock would give them a nice valuation, said Cramer.
“If they have a great product that people want and pay a decent premium over intrinsic value, even though the earnings per share are lower, that will give them a huge lift and put them at a premium valuation,” he said.
Sears (SHLD) is another major dividend stock, but Cramer would avoid the stock as a speculative play, especially in the face of slowing down the economy.
Cramer’s advice to investors who want to give stock a run for their money is, focus on companies with cost-driven business models, low fixed overhead, and low operating expenses, and he thinks valuing a stock at the current levels should only be done by professionals or people with extensive trading experience.
“Get a couple of experts to come in to review your finances, to decide on what you can afford and need to live on,” he said. “Don’t just go chasing the high - stay away from those that come off a peak at an exuberant price. Some of them are good in the long run, but don’t do that.”