Jim Cramer recommends selling some stock to raise cash until the market is less confusing

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CNBC’s Jim Cramer on Tuesday advised investors to trim some stock positions in order to collect cash that can be deployed back into the market when there’s more certainty.

The “Mad Money” host said he sees a number of contradictory forces afoot, such as Treasury yields trending lower at a time of heightened inflation worries, that render it difficult to make sound investment decisions.

“Sooner or later the market will make up its mind, and then you can make up yours. If you haven’t sold any stock to raise money, maybe take a little off the table. You’ve got my permission,” Cramer said. “The set-up’s just too confused, frankly, so it’s good to keep some cash in your pocket until we stumble onto enough clarity to start making sense of the situation.”

Cramer’s charitable investment trust is now holding about 10% cash, he said Tuesday morning on CNBC, describing that as “a more reasonable level” to be at because he believes “things have gotten a little too buoyant.”

On “Mad Money” Tuesday evening, Cramer said he’s struggling right now to even recommend purchasing some of his longtime favorite stocks such as PayPal, Nvidia and AMD. The overall environment is just too murky, he said.

“These are three fantastic stocks of amazing companies that I’d love to buy on weakness, normally, if we had more clarity on what’s happening in the economy and the market hadn’t already run so much,” Cramer said. “But we’ve had that monster rally here and we can’t truly explain why bond yields keep sinking at the same time that inflation is raging. Rather than making a hasty, ill-informed decision … I’d rather just wait until we get more insight.”

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