Mad Money: Cramer's Defensive Huddle - Mad Cap Recap

FEATURED SLIDESHOW

  Who Is The Worst CEO?
Mad Money needed new inductees for its
Wall of Shame, so we asked viewers for
  nominations.

RECENT POSTS

Get stock and market information from Mad Money's Jim Cramer sent to your mobile phone.

Road Rules

Investing can be confusing. Luckily, Cramer has mapped out some road rules for all you Home Gamers trying to navigate the jungle that is Wall Street. Think of it as "Mad Money 101" –- some fundamental advice to keep in mind as you play the market. Whether you're a first time investor or a seasoned financier, it's always good to remember the basics.

Watch the Videos

Text Size

Nov.27

10:36 AM ET

Tuesday, 27 Nov 2007

Cramer's Defensive Huddle

Posted By:Tom Brennan

Topics:Stock Picks | Stock Market

Sectors:Food and Beverage | Oil and Gas | Health Care

In this market, if you can eat it, drink it or smoke it, then buy it, Cramer said. Any other kind of stock will probably lose you money.

Forget about aggressive moneymaking. Recession is a very real possibility, so it’s time to play defense. The usual stocks apply: Coca-Cola [KO Loading... () ], Pepsico [PEP Loading... () ], Procter & Gamble [PG Loading... () ], Merck [MRK Loading... () ].

Cramer’s sticking with a few of his so-called “Indestructibles,” too. Altria [MO Loading... () ], Medco Health Solutions [MHS Loading... () ] and Transocean [RIG Loading... () ] all still work. In fact, RIG just hit a 52-week high, and Credit Suisse upgraded the stock Monday.

Unfortunately, two Cramer favorites – Foster Wheeler [FWLT Loading... () ] and Freeport-McMoRan [FCX Loading... () ] – have declined. The market just gave up on them even though most of their business is outside the U.S. So even though Cramer likes them more than any of these defensive stocks, they just can’t be owned right now, he said.

The bottom line: This market craves consistent, unexciting earnings. Cramer doesn’t think that won’t change until the Federal Reserve addresses the U.S. housing problem.

Click for the rest of Monday's show:

Jim's charitable trust owns Altria, Freeport-McMoRan, and Transocean.

Questions for Cramer?

Questions, comments, suggestions for the Mad Money website?

Tools:

Print Email

Previous Post Back to Main Page

ADD COMMENTS