This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

Cramer's 'Mad Money' Recap: A Defensive Portfolio (Final)

Stock quotes in this article: MOS, EXEL, BPL, PPL, GSK, PLAB, SM, CHK

Search Jim Cramer's Mad Money trading recommendations using our exclusive Mad Money Stock Screener and watch Jim Cramer's Mad Money Post Game video exclusively on TheStreet.com.


NEW YORK ( TheStreet) -- "Some days are just horrible," Jim Cramer admitted to his "Mad Money" TV show viewers Tuesday, but that doesn't mean that investors should flee towards cash.

Instead, Cramer said that investors need to get into a position to make the most of the good days and lose the least on the bad ones.

Cramer said there were a number of reasons why the markets sold off on the same debt deal that we've been praying for for weeks. It's obvious that the markets hated the debt deal, he said, as it failed to make any meaningful spending cuts. The markets are also worried about the economy, which came to a grinding halt in July as companies waited for a deal to materialize.

Then there are the worries still lingering in Europe, as other growth nations like Brazil, China, India and Russia all put the brakes on their overheated economies.

So with so much bad news abound, where does Cramer think investors need to park their assets? At the risk of sounding like a broken record, he said gold needs to be a part of everyone's portfolios, either as gold bullion or the SPDR Gold Shares (GLD) ETF. Cramer said investors also need to look towards companies with high dividends, as well as international stocks like the Canadian banks or Vodaphone (VOD).

Cramer also gave the nod to solid industrial names like Eaton (ETN) and PPG (PPG), as well as any of his high-growth F.A.D.S.C.A.N. stocks, which include names like F5 Networks (FFIV), Deckers Outdoor (DECK), Chipotle Mexican Grill (CMG) and Netflix (NFLX).

"It will get better over time," Cramer reminded viewers, as he told them that the markets aren't likely to fall much more than the 6% they already have from their highs. He urged home-gamers to get in a position to make the most of what the markets are giving.

1 of 3

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 16,744.28 -60.43 -0.36%
S&P 500 1,937.26 -8.90 -0.46%
NASDAQ 4,397.2270 -24.8580 -0.56%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs