Jim Cramer says investors too worried about the Fed’s next move are missing opportunities

CNBC’s Jim Cramer on Thursday said some investors are missing market opportunities because they are too focused on what the Federal Reserve will do next when it comes to interest rates.

“I’m not saying the stock market will never go down when the Fed’s easing,” he said. “I am saying there are limits to what the Fed impacts. And I swear by the managers who know a lot about business, and who don’t cower when Jay Powell grabs the mic to talk about the pace of rate cuts.”

Many companies aren’t necessarily tied to the central bank’s decision, he said, adding that for some, competent management can be a more important metric on which to concentrate.

For example, he said investors too concerned with the possibility of fewer or no rate cuts might have sold stock of Blackstone and eschewed major gains. Some on Wall Street may have been worried that the investment management company “lives and dies by the Fed,” and they felt Thursday’s strong retail sales figures would discourage rate cuts. But Blackstone reported an impressive quarter, and the stock reached a new all-time high, up more than 6% by the close.

He also referenced the turbulence this week in the semiconductor space — triggered by a bad quarter from Dutch chipmaker ASML on Tuesday — saying investors’ Fed worries may have scared them out of expensive stocks. Major players in the sector like Nvidia and Taiwan Semiconductor shouldered losses. But the stocks recovered, and Jensen Huang’s artificial intelligence powerhouse hit a new all-time high on Thursday.

“Everyone who’s obsessed with the Fed’s next foray is basically investing with blinders on, and as a result, they’re missing out on some of the greatest moves I’ve ever seen in my life,” Cramer said. “Moves coming from the most unlikely of stocks.”

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Disclaimer The CNBC Investing Club Charitable Trust holds shares of Nvidia.