Cramer's 'Mad Money' Recap: Four Ways to Play Iran

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Recent geopolitical tensions with Iran have gotten Jim Cramer thinking about how people should prepare their portfolios for "doomsday." Cramer laid out his "Iran Awry Portfolio" on Monday's "Mad Money" TV show, complete with four investment ideas -- a mix of defense, oil, gold and cash plays -- to prepare viewers for the worst should troubles escalate in that nation.

The first stock Cramer wants people to get into in case things go awry in Iran is Abbott Laboratories (ABT Quote).

Because "higher oil prices breed recession," it's time to start getting into defensive stocks, Cramer said. Abbott recently hit its 52-week high, and it is the only drug stock that consistently beats it numbers, he said. Plus, not only is Abbott cheap, it's a grower.

"Abbott is a cradle-to-grave service, and it has a ton of [product] approvals coming up," Cramer said. "It could be the great insurance in case Iran does something stupid."

He called Abbott the "sleeper drug stock" that should do well even if there is "Armageddon."

Second, market players need an oil play that won't get cut off by Iran and that also has a high yield, Cramer said. For this he advised people buy Kinder Morgan Energy Partners (KMP Quote).

Kinder Morgan has a 6.3% yield, and a rush into Treasuries, which would likely happen if things went bad in Iran, will only increase this yield, Cramer said. In addition, the company has a big natural gas pipe, and "the distribution for natural gas should be boosted if Iran does something nutty," he pointed out.

What Cramer said he likes best of all is that Kinder Morgan distributes profits.