Cramer says the pull of the bond market is worrying, so keep some cash on hand

CNBC's Jim Cramer said the market's not so ugly that cash is king and investors should bail completely from it, but he indicated that it's still a good idea to have some on hand.
One cause for concern is the pull of the bond market, Cramer said, with some investors enticed by risk-free Treasurys.
"We've been in this sell-off for over a month, and I still think it's a dicier time than most investors seem to believe," he said. "Cash may not be king right here, but it certainly isn't pawn either."

CNBC's Jim Cramer said Wednesday that he doesn't feel great about the stock market right now, but is optimistic for the longer term.

Cramer said the market's not so ugly that cash is king and investors should bail completely from it, but he indicated that it's still a good idea to have some on hand.

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"We've been in this sell-off for over a month, and I still think it's a dicier time than most investors seem to believe," he said. "That's OK. We have cash for the charitable trust — I hope you have some, too. Cash may not be king right here, but it certainly isn't pawn either."

One cause for concern is the pull of the bond market, Cramer said, with some investors enticed by risk-free Treasurys. Stocks will decline if long-term bond yields continue to rise, he added, pointing out that this week's slew of colossal bond auctions could hurt equities. He also noted that many investors believe earnings are the most important factor when judging stocks, saying that some recent market gains based on earnings may be short-lived.

Cramer mentioned Wednesday's monthly meeting for the CNBC Investing Club's Charitable Trust, where he found himself "couching and hedging and cautioning" about many stocks' near-term performances.

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"When you own more than 30 stocks and you can only recommend half a dozen stocks to buy at this very moment, that's the ultimate sign that cash is [a] rook," he said. "It's not king, because there are still some stocks that are worth buying right here — if cash were king, you'd be selling, and selling and selling — but too few of them right now to justify buying hand over fist."