CNBC’s Jim Cramer says that the U.S. economy is not on the verge of a recession, despite investors rushing for the safety of government bonds on Wednesday.

He spoke shortly after U.S. stock closed higher Wednesday, recovering from steep losses earlier in the day, as a sharp drop in bond yields stabilized. The move tempered worries over slowing economic growth amid the ongoing trade war between the U.S. and China.

“Normally, when you see this kind of action in bonds, it means a recession is right around the corner,” Cramer said on “Mad Money ” on Wednesday. “But I think that’s a profound misreading of the current situation.”

Cramer said there is a rush of bond buyers from overseas who are looking are looking to get a much better return on their money. However, Investors see the “action in bonds as a symptom of weakness here.”

“In reality, it’s a symptom of weakness abroad, one that actually strengthens our economy because lower long-term interest rates are fabulous for the economy.” Cramer said.

Cramer suggests the U.S. economy is better than the recently embattled stock market has reflected recently, telling investors that they are being “faked out” by tanking U.S. equities. He argued that investors and TV pundits need to “dial back the rhetoric” and to look at the “reality of the companies that are reporting” solid earnings.

“The bottom line? Don’t let the talking heads blind you to everything that’s going right,” he said. Sure, there are real negatives here, but if you keep your eyes open, if you have some situational awareness when you’re waiting in line at CVS, maybe you’ll think about buying the stock, too.”

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