Cramer's 'Mad Money' Recap: Obama's Chilling Impact on the Markets

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Today's market action had Jim Cramer wondering "what if?" on his "Mad Money" TV show Wednesday.

He said that it wasn't just the bad earnings from Alcoa (AA Quote) and Intel (INTC Quote) that killed the markets, but also the comments from President-elect Barack Obama.

"What if the stimulus fails?" asked Cramer. What if slow growth prevails for the foreseeable future? What if the markets are in for more days like today?

Cramer said the economy and the markets don't want to hear about jobless benefits being extended. He said they need to hear about jobs being created and roads being built.

Cramer said in times of uncertainly, investors need to be prepared, with stocks like his No. 3 three favorite stock in the Dow Jones Industrial Average, Johnson & Johnson , which he also owns for his Action Alerts PLUS portfolio.

Johnson & Johnson is a classic defensive name, said Cramer, and has the added benefit of being down 13 points from its high.

Cramer called Johnson & Johnson one of the smartest drug managers around, and one that just made two great acquisitions on the cheap with its purchase of Mentor and Omrix.

The company is now in a great position to expand while cutting costs. He also liked the fact that celebrity investor Warren Buffet has bought into the company at levels higher than where it trades today.

Historically, times of weakness are great times to buy Johnson & Johnson, said Cramer. Shares are currently down 18% from their recent highs. The last time shares were down this much was April, 2002, when shares fell from $65 to $40 only to rebound to $72 a share. In November 1999, shares fell from $52 to $33 a share, only to rebound to $65. "This is one you buy on weakness," said Cramer.

Cramer: Forecasts for GM and H-P in 2009

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