Cramer's 'Mad Money' Recap: Ugly Market Limits Picks

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"Everything in this market has been poisoned by the Federal Reserve," Jim Cramer told viewers of his "Mad Money" TV show Friday.

The only stocks Cramer believes will work in this market are in infrastructure, oil, agriculture, aerospace/defense, health care cost-containment and gold.

"The Cramer rant heard around the world doesn't really sound too crazy anymore, does it?" Cramer explained. "The Fed has become more than a travesty," he said. "They've been so consistently wrong, they should be ashamed of themselves."

These turbulent markets were very easy to foresee, but the Fed didn't move aggressively last year, Cramer said. He said he tries to be bullish, but admitted it's hard in this environment. Out of the 6,000 stocks he follows, Cramer was able to identify only 40 to 70 names that he now finds attractive.

Cramer cited PepsiCo (PEP Quote), Coca-Cola (KO Quote) and Altria (MO Quote) as good defensive names, along with Medco Health Solutions (MHS Quote).

Cramer also warned viewers that "we may have lost the tech stocks." He advised sticking only with companies that are able to make their numbers, stocks like Microsoft (MSFT Quote).

Tips From a Mutual Fund Guru

In turbulent markets, one strategy Cramer has found successful is piggybacking off institutional investors with great track records. One such investor is Ken Heebner, manager of the CGM Focus Fund. The fund was ranked No. 3 for the year and posted gains of 79.9% for 2007.