Fed Meetings Will be 'Big Bad Events', Cramer Warns

CNBC's Jim Cramer says investors shouldn't join the stock sellers ahead of the next Federal Reserve meeting. The Fed raised interest rates by a quarter percentage point on Wednesday, its first hike in three years, bringing its benchmark rate to 3.75% to 4%. Stocks had sold off in seven of the eight sessions leading up to the decision, then rebounded Thursday.

Cramer says this pattern is reminiscent of the 'big bad event', a scheduled catalyst that creates enough uncertainty for investors to sell ahead of it, only for stocks to rebound once the event passes and the outlook is clearer. He expects this pattern to become more important if the Fed continues raising rates.

The central bank's next policy meeting is scheduled for October 27 and 28. Cramer recommends that instead of trying to time the sell-off by dumping stocks ahead of the meeting, investors should consider using weakness closer to the decision as an opportunity to buy. He suggests buying as close to the meeting as possible, and then buying more immediately after the meeting.