TheStreet.com TV Recap: Go on Defense

The bears are in charge today, which is why people should only be buying defensive stocks, Jim Cramer said on TheStreet.com TV's Wall Street Confidential video Thursday.

Heinz (HNZ Quote), Procter & Gamble (PG Quote) and Bristol-Myers (BMY Quote) "make sense here," he told Gregg Greenberg, the host of Wall Street Confidential.

"People have to understand that you can be short-term bearish within a long-term bullish environment," Cramer said.

When Greenberg asked how dangerous the yen carry trade is, Cramer said the carry trade has been going on forever and "there are periodic times where it unwinds" and "scares" people. There are also periodic accounts that get "margined out" here, he said.

But in the end, "This is all business as usual within the context that it's very easy to scare people," Cramer said. "This is noise."

What people need to do is just play in the soft goods area, he advised. Cramer said he can't find anything good to say about tech, and the commodity stocks and gold are all coming down. He believes the Fed is going to cut rates, saying it goes in this order: disaster, crisis and then a cut.

Meanwhile, food and beverage stocks, soft good plays like Clorox (CLX Quote) and Colgate (CL Quote), and solid diversification can help market players take the pain of the developing crisis, he said. "Nothing else is going to work."