Own stocks that are cheap on a price to earnings basis

CNBC’s Jim Cramer on Friday previewed next week’s roster of earnings and advised investors to stick to companies that are profitable yet affordable for investors to own.

“In this environment, you need to own companies that make stuff and do things profitably, but let’s add, also, with stocks that remain cheap on a price to earnings basis,” the “Mad Money” host said.

Even as the Fed tries to tamp down higher prices, “we’ve already seen signs that inflation is peaking in many areas. Unfortunately, so is the rest of the economy,” he later added.

Cramer said that on Monday, he’ll be keeping his eye on Russia’s invasion of Ukraine and its effect on commodity prices. He also said he’ll be watching the 30-year Treasury bonds.

“The 30-year, not the 20[-year], is where all the action will be once the Fed starts selling its bond portfolio. You need to know that this sell-off in the 30-year is signifying that much higher rates are on the way,” Cramer said. “Get ready for them. Higher long rates…