CNBC's Jim Cramer said Monday he believes stock market investors should not overreact about stagflation just yet, suggesting Wall Street's growing worries may be overblown.

"I say give it time and do not panic," the "Mad Money" host said. "It might surprise you how quickly things get better right when most money managers think that all is lost."

A number of strategists are warning about stagflation — which is the combination of inflation and a stagnant economy — and others are offering playbooks on how to invest during it, Cramer said. However, Cramer said he thinks investors need to be prepared to swim against the current.

"In my experience, when everyone thinks something's gone wrong, something's gone bad, you have to be careful not to buy into the group-think," Cramer said. "Right now, I don't know a soul who believes we can get out of this moment without much, much, much lower stock prices ... so, permit me to take the other side of the trade."

Cramer acknowledged the inflationary pressures in the economy are considerable and some may prove to be more persistent. But he said he's skeptical that economic growth will be stagnant in the long-term, pinning many of the recent disappointing data points as being pandemic-related.

Both problems may take a bit of time to solve, Cramer said, but he contended they will improve as the U.S. gets a better handle on Covid.

"While we wait for the world to go back to normal, don't let the stagflationistas scare you away from the stock market," Cramer said. "We don't really have a stagnant economy, and to the extent it's slowing, I'm betting that will be pretty temporary," he added. "As for inflation, it's real, but we just need to buckle up and stop trading off every little tick of oil or every dime of ketchup."