Cramer advises investors to search for undervalued stocks amid market downturn.

• Cramer advised investors to consider investing in "sleepers" rather than solely focusing on owning hot stocks, as reviewed in Wednesday's market action on CNBC.
• The game is self-correcting: hot stocks eventually cool down, sleepers wake up and become expensive themselves," he said. "It's a process, people, and if you approach it clinically, you'll know that expensive stocks come at a price.

Cramer advised investors to focus on overlooked stocks rather than the popular ones.

The game of investing is self-correcting, as hot stocks eventually cool down and underperforming stocks become expensive, but it's important to approach it clinically and recognize that the high-priced stocks come at a cost as the underlying companies can't meet Wall Street's unrealistic expectations.

The Fed's decision not to cut interest rates in the spring caused a decline in major averages on Wednesday, which Cramer believes will allow investors to make more informed decisions about their portfolios.

Despite reporting revenue and earnings that surpassed Wall Street's expectations, Cramer observed that investors had set expectations too high before earnings, resulting in a decline in the shares of both companies. By the end of the day, the former had fallen 7%, while the latter had dropped over 2%.

Despite reporting disappointing earnings on Tuesday, the stock price increased on Wednesday. Some analysts believed that Wall Street had anticipated worse results. In Cramer's view, the company's stock had no potential for further growth.

Cramer advised erring on the side of selecting players who haven't run too much due to the Fed's inaction, as anything that has run too much can still slip down even with good numbers.

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