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NEW YORK (TheStreet) -- As a general rule, don't take your investment advice from the head of the Federal Reserve. That was Jim Cramer's advice for his Mad Money viewers Wednesday after Janet Yellen spooked the markets by calling stock valuations "potentially dangerous."
While the Fed does like to opine on stocks from time to time, Cramer noted its track record to date has been less than stellar. Everyone remembers Fed Chair Allen Greenspan's infamous "irrational exuberance" statement from 1996, the one that would have kept you out of one of the best bull markets in recent memory.
But even as late as last year, Yellen expressed worries over the biotechs and social media stocks, calling them "stretched." That call too has proven to be dead wrong, sans a handful of notable exceptions like Twitter (TWTR) - Get Report, a stock Cramer owns for his charitable trust, Action Alerts PLUS.
The fact is that nothing good comes from the Fed commenting on the markets. It only serves to scare people from making long-term investments on great, quality companies.
If the Fed is indeed worried about stock valuations, it has tools at its disposal to fix the problem, mainly its authority to regulate margin requirements. Margin rates, unlike interest rates, only affects those making risky bets in the markets using borrowed money.
So use Yellen's cautionary words to maybe take some profits, Cramer concluded. Don't use them as an excuse to sell or scare you out of the markets altogether. Some stocks are indeed overvalued, as they always are, but the overall markets are still doing just fine.
As for Yellen, she's still batting zero.
Executive Decision: Irwin Simon
For his "Executive Decision" segment, Cramer sat down with Irwin Simon, chairman, president and CEO of Hain Celestial (HAIN) - Get Report, the natural and organic food provider whose stock has risen over 500% since Cramer first took notice in September 2005, but also one that has fallen over 10% from its March highs.
Simon told Cramer he was very pleased with Hain's most recent quarter, which included 19% revenue growth, but Hain is not a quarter-to-quarter story. Hain, he said, is changing the way the world eats and is taking its cues from the 93 million Milennials demanding things such as GMO-free products.
If you look at this younger generation, Simon noted, yogurt is replacing processed cereals, healthy teas are replacing coffee and fresh juices are all the rage. That's what Hain is offering consumers.
When asked, "Are farmers getting it?" Simon replied that one of Hain's biggest challenges is procuring fresh ingredients and building the infrastructure needed to support its operations. But even as farmers are converting their fields to organic in record numbers, demand is still outstripping supply.
Cramer reiterated his support for Hain Celestial.
What Does Einhorn Know?
Should investors bet alongside activist investor David Einhorn, who came out this week against the oil shale drillers, including EOG Resources (EOG) - Get Report, an Action Alerts PLUS holding, and Pioneer Natural Resources (PXD) - Get Report? Not so fast, Cramer cautioned.
Cramer reminded viewers that Einhorn was dead wrong when he bet against Keurig Green Mountain (GMCR) last year, covering his short position at a huge loss. Einhorn also was wrong on his subsequent bet against Amazon.com (AMZN) - Get Report, which also rallied hard in the face of his criticism.
In the case of EOG, the company has been dramatically lowering its costs because of lower oil prices, down from $95 a barrel just three years ago to just $65 a barrel today. Yes, the company lost money this most recent quarter, but it is among the best positioned for the recovery in oil prices that is only just beginning to occur.
Cramer called it unfair to lump EOG in with the lesser names in the oil patch. He also called Einhorn's ridicule of the group about 10 months too late to make investors any money.
Executive Decision: Chuck Bunch
Bunch explained for many years PPG saw coatings as the company's best opportunity and made some tough decisions to focus all its efforts in that area. Now, PPG is the number one player in the global coatings market, all while being more diversified in products than ever before.
Technology and innovation remains at the heart of what PPG does because its customers in aerospace, automotive and marine coatings all demand increasingly better products. That's why PPG continues to be a key supplier to just about every major auto brand.
Turning to more financial matters, Bunch confirmed PPG has been able to refinance much of its debt in Europe, taking advantage of the region's low interest rates. Meanwhile, here at home, the company is offering up a 2:1 stock split next month to increase liquidity. It continues to focus on its dividend and stock buyback programs.
Cramer continued his recommendation of Bunch and of PPG.
In the Lightning Round, Cramer was bullish on Kroger (KR) - Get Report, Radware (RDWR) - Get Report, Fortinet (FTNT) - Get Report, Palo Alto Networks (PANW) - Get Report and Bristol-Myers Squibb (BMY) - Get Report.
Cramer was bearish on Sysco (SYY) - Get Report, FreightCar America (RAIL) - Get Report, Alliance Resource Partners (ARLP) - Get Report, Lands End (LE) - Get Report, Ares Capital (ARCC) - Get Report and The Container Store (TCS) - Get Report.
Executive Decision: Greg Ebel
Ebel said pipelines will always be needed no matter the price of the commodities they transport. He said oil and natural gas will always need to move from the supply regions to the demand regions, which makes Spectra also always in demand.
Among Spectra's most notable recent projects are a new pipeline, the first in 30 years, to supply New York City with more natural gas. Spectra is also working on two projects to supply New England with more natural gas, as well as a project to bolster supplies in Philadelphia.
Turning to the issue of public perceptions of pipelines, Ebel said there's no doubt pipelines are the cheapest and safest way to transport oil, natural gas and liquids to consumers. They are certainly not easy to get permitted and build, but they're the best way to get the job done.
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At the time of publication, Cramer's Action Alerts PLUS had a position in EOG and TWTR.