Cramer's 'Mad Money' Recap: Bulletproof Your Portfolio

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Investors should shield themselves from the coming housing-led recession with a bulletproof portfolio, Jim Cramer told viewers of his "Mad Money" TV show Thursday.

Cramer said the current situation is similar to that of 1990, where there was a sharp downturn and averages fell 13% in six months because of credit problems related to commercial real estate. Right now, he said, the credit problems are in residential real estate.

He said if investors are going to make money, they have to own stocks that worked in 1990. Those included high-growth stocks, indestructible stocks with solid balance sheets, high dividend-yielding plays, and companies with international exposure.

Currently, he said, the agriculture, mining, infrastructure and technology sectors all work right now.

Dodging Bullets

"When the going gets tough, your first priority has to be capital preservation," Cramer told viewers. "What stocks would I want as my bulletproof vest?" he asked. "I've got five stocks for you."

The first is Altria (MO Quote), a stock he owns for his charitable trust, Action Alerts PLUS.

Altria is as indestructible as it gets, he said. It has a huge farm business, has little exposure to higher commodity prices and is a big "rest of worlder." The company is splitting into two businesses--a domestic business and an international one -- and that should unlock a lot of value," said Cramer, adding it has a 4% dividend yield.

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