Cramer's 'Mad Money' Recap: Oct. 6

The only stocks Cramer said he will even go near are the food, drug, and packaged goods makers, along with high dividend paying stocks where the dividends are protected by strong earnings, and companies with large cash positions relative to their current valuations. Other than these stocks, he said, cash is the place to be.

A Flight to Safety

Cramer spoke with Zan Guerry, chairman and CEO of personal products maker Chattem (CHTT Quote), to see if the company fits the bill as a safe, recession-proof place to invest.

Guerry said that most of Chattem's products, including Gold Bond, Icy Hot and Act mouthwash, are things people have to use regardless of the economy. He said the company is in a strong position, with a solid balance sheet and $5 a share of free cash flow.

When asked where the best place was to invest that free cash, Guerry said that Chattem is being conservative and is investing in advertising and building its brands. However, Guerry also noted that if an acquisition opportunity arises, the company will certainly seize that opportunity.

Cramer said Chattem has both strong brands and declining raw costs going in its favor. Chattem, he noted, also recently pushed through a 5.4% price increase to further bolster its bottom line.

With 65% of the company's sales coming from its six top brands and all six of those brands being No. 1 in their categories, Cramer called Chattem one of the ultimate safety stocks.