Cramer's 'Mad Money': Stay in the Game

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"We must be nimble, but money can still be made," a subdued Jim Cramer told viewers of his "Mad Money" TV show Friday.

In an environment where finding a bull is getting tougher and tougher, it's more important than ever to have the right stocks, he said.

Cramer said in times like these, it's tempting to ask "why bother?" He said in the short term, it might seem like it makes sense to buy bonds, keep your money in cash or just short the entire market.

But, he said, in the long term, investors can't afford to miss the recovery when stocks do finally turn around.

Cramer again advocated a diversified portfolio of defensive stocks, along with some cash and gold. However, he stressed the importance of having the right defensive stocks.

Not all defensive names are created equal, said Cramer. Names like Procter & Gamble (PG Quote), may sound defensive, but in times of fierce competition, investors need to stick with the winners.

He recommended names like Wal-Mart (WMT Quote), a stock which he owns for his charitable trust, Action Alerts PLUS, and McDonald's (MCD Quote), along with private label food makers like Ralcorp (RAH Quote) and Treehouse Brands (THS Quote).

In uncertain political times, Cramer said he would stay clear of the other kind of defensive stocks, mainly General Dynamics (GD Quote)and Lockheed Martin (LMT Quote).

Cramer admitted the markets are, and will be, miserable. But when the smoke clears, he said, he will continue to find the bulls.