Jim Cramer says to buy the dip on days like Monday: ‘It’ll be too late’ if you wait for the Fed

Cramer said investors should take a chance on buying the dip even if it means accepting some short-term losses.

I know from experience that if you wait until the Federal Reserve is done and inflation is broken, it will be too late to buy.

You have to anticipate the peak in inflation, like on Monday, when the market looked so dangerous and then turned placid. If you can't take the pain, then swap into Treasurys, which are yielding 3%, Cramer said.

The S&P 500 dropped to new lows on Monday but rebounded before the session ended. The S&P 500 climbed while the Nasdaq gained. The index was down more than 500 points at its low.

Cramer told investors that if a company's stock performs poorly on Monday despite reporting an upbeat quarter earlier this earnings season, it's not a reflection of the current market. American Express, Coca-Cola and UnitedHealth Group are examples of companies whose stock prices have fallen.

When interest rates rise rapidly, the market won't pay as much for future earnings.