Why Jim Cramer Says Prepare for Higher Rates After Strong November Jobs Number

NEW YORK (TheStreet) -- The U.S. Department of Labor announced Friday that employers added 321,000 jobs in November, the largest one-month increase in three years.

TheStreet's Jim Cramer says this number shows the economy is very strong, which means the current low rates are not sustainable even with the status of Europe and Asia. Cramer tells people to be ready for higher rates, but notes this does not mean stocks have to go lower.

Cramer says this will be the big hurdle that people must get over in 2015: higher rates do not necessarily mean lower stocks. He says some stocks will go lower, such as consumer staple stocks that investors own for dividends.

Must Watch: Jim Cramer: Get Ready for Higher Rates Following Strong Job Numbers

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

He suggests people look at the way oil services stocks reacted when the price of oil declined and notes it didn't matter how big the yields were in those cases.

Cramer tells investors to rethink their portfolio. He says this will be the time to own some banks and industrials, but to get out of high-priced healthcare stocks that investors held onto for so long and the food stocks that investors are only into because of the dividends.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

More from Markets

AMD Rises Above the Competition; Loan Losses Mount for Big Banks -- ICYMI

AMD Rises Above the Competition; Loan Losses Mount for Big Banks -- ICYMI

McKesson Internal Review Clears Senior Management of Wrongdoing on Opioids

McKesson Internal Review Clears Senior Management of Wrongdoing on Opioids

Starbucks Surprises Wall Street With U.S. Sales Up a Paltry 2%

Starbucks Surprises Wall Street With U.S. Sales Up a Paltry 2%

Dow Jumps 238 Points as S&P 500, Nasdaq Also Climb

Dow Jumps 238 Points as S&P 500, Nasdaq Also Climb

Why Nashville, Denver, LA Should Reconsider Bids for Amazon HQ2

Why Nashville, Denver, LA Should Reconsider Bids for Amazon HQ2