The

U.S. Labor Department

reported a 0.4% increase in May's Consumer Price index Wednesday, Jim Cramer said on his

"RealMoney" radio show.

As rates keep increasing, he said, people start to worry about the competition to stocks. In this type of market, just like in 1999 and 2000 when the

Federal Reserve

talked about being vigilant toward inflation, people begin to sell stocks, invest less in them and spend less, Cramer said.

And the next thing you know, you have a crushed economy.

Commodities prices were completely out of control about a month ago. If the Fed believes that it has won at controlling the prices, maybe the market will witness only one more rate hike, Cramer said.

Gold is down right now, oil is starting to come down and copper is getting crushed.

Until the Fed is finished with its crusade against the market and is on our side, people have to be cautious, Cramer emphasized.

The

Nasdaq

index has been down 10 straight days, the longest period it has consecutively been down in 22 years, Cramer said. What people need to focus on at this time is what will happen after it is finished declining.

In 1984, the last time the Nasdaq was down for this long, it went down 6.7% in nine days, and 0.3% the next day -- then it went up, Cramer said.

Also, toward the end of 1984, there was another instance when the Nasdaq lost 11.2 % and the year after it went up 31%.

Those who are patient and use this selloff as an opportunity to buy may not be immediately rewarded, but will be rewarded in time, Cramer said.

Cramer says that although a year seems like a long time, there are a lot of opportunities in decline that may not be in near-term. Bet on the worst-case scenario, he said, and be cautious.

To see the most recent edition of The RealMoney Radio Recap in its entirety, please click here. This recap is published every day around 3 p.m. ET.

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