Jim Cramer: Be Careful of What You Buy

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Jim Cramer weighs in on the Federal Reserve's surprise rate cut Tuesday, March 3.

The Federal Reserve made a rate cut of 50 basis points.

"I mean we got to just understand that we could rally as much as 200 points just on...whatever it takes. You know, we get one thing that says that there've been 10 people who've been tested with the Gilead drug and it works. Well, that's going to be...that'll send you up 500 [points] and you'll be able to say, wow, we also got defense backing. And so you have to understand it's pretty binary in the sense that you get something that makes it so that people get well. And you offer the rate cut, then we're going to be saying, well why we buy it up a thousand? So...I think this decline should be bought. But I think it's also, you've got to be careful what you buy. That's why we have Action Alerts PLUS. We don't just go trade the futures like so many people who don't do the homework or think that stocks are all the same," said Cramer. 

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