Cramer: 'You'll wish you sold at these prices' if the Fed hikes rates in December

Investors should sell their stocks now if they expect the Federal Reserve to hike interest rates next month, CNBC's Jim Cramer argued on Tuesday.

"If the Fed moves in December, you'll wish you sold at these prices," Cramer said on "Squawk Box." "There's nothing good here."

The Fed has already raised rates three times this year. Wall Street expects one more in December and so does Cramer who has predicted the central bank would go next month but should then "wait and see."

Cramer spoke as Dow futures were indicating a more than 300 point drop at the open on Wall Street.

The Dow Jones Industrial Average and S&P 500 closed Monday at their lowest levels of November. The Nasdaq finished at nearly seven-month lows and dipped further into correction territory.

Nearly every sector is in a "capitulation phase," with the exception of health care, said Cramer. "There's just a lot of bad. I mean I'm not going to hide it. There's just a lot of bad. It's a bear market."

The "Mad Money" host has been critical of the Fed under Chair Jerome Powell, saying central bankers need to recognize that the economy is slowing and they can't move rates to a preconceived notion of so-called neutral.

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