Jim Cramer predicts that the anticipated Fed rate hikes will cause a market pivot, but he advises caution with FAANG stocks.

• On Thursday, CNBC's Jim Cramer stated that he anticipates the market will shift towards recession-resistant stocks instead of costly growth stocks.
• The "Mad Money" host advised against buying expensive growth stocks when the Federal Reserve increases interest rates to combat inflation.

On Thursday, CNBC's Jim Cramer stated that he anticipates the market will shift towards recession-resistant stocks instead of costly growth stocks.

The "Mad Money" host advised against buying expensive growth stocks when the Federal Reserve increases interest rates to combat inflation, as the hedge fund playbook suggests selling stocks until the tightening cycle is almost over.

"A new bull market exists in recession-resistant names that consistently perform well, even during economic downturns," he stated.

On Thursday, the Dow Jones Industrial Average, S&P 500, and Nasdaq Composite all experienced gains, with the Dow increasing by 0.25%, the S&P rising by 0.43%, and the Nasdaq Composite increasing by 0.06%.

Cramer advised against investing in the largest tech companies at present.

Cramer emphasized the importance of being cautious with the FAANG names and their peers, stating that out of all the growth stocks, only Google-parent and Facebook-parent are worth investing in because they are not overvalued in terms of next year's earnings.

FAANG is an acronym for Facebook, Amazon, , and Google.

Cramer cautioned that a shift to a bull market may not occur immediately.

Pivots do not occur overnight, even though it may seem that way. This one is particularly challenging because for a long time, the entire stock market has been dominated by FAANG and their allies. Cramer explained that it was a bull market in a select few stocks while the majority of others were in a bear market. Now, the bear market is beginning to turn into a bull market, and most of this change will occur over the next month.

Meta, Amazon, Apple, and Alphabet are companies that Cramer's Charitable Trust owns shares of.

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