Jim Cramer, portfolio manager of TheStreet's Action Alerts PLUS and host of CNBC's "Mad Money," talked about how to play defense in a down market on Friday.
Cramer advises to invest in pharmaceutical and food names, like Eli Lilly (LLY - Get Report) , Mondelez (MDLZ - Get Report) and Kraft Heinz (KHC - Get Report) . He added that investors should avoid companies that have to borrow to pay their dividends, like Kinder Morgan (KMI - Get Report) .
Cramer was also asked about the Dow Chemical (DOW) and DuPont (DD - Get Report) merger. He said investors will continue to get their dividends if they own Dow Chemical while the deal is being finalized, which he added will take a long time.
Action Alerts PLUS owns Dow Chemical, and Cramer likes the deal, saying he's confident it will bring out great value.
A viewer asked about if mortgage REITS like Resource Cap (RSO) will benefit from a rate hike by the Federal Reserve and Cramer gave an emphatic response.
"You need to sell them, period. I've been trying to get people out of those, they could be in a very wrong position for the Fed. Just sell them."
A viewer asked about Norfolk Southern (NSC - Get Report) , nothing that Warren Buffett's BNSF Railway said it's interested in making a competing bid for the company. Cramer said the U.S. Justice Department won't let that happen "so if you do this, you're just a hedge fund trader."
Another viewer asked if the restaurant company Noodles (NDLS - Get Report) can turn around. Cramer said while restaurants can turn around -- pointing to McDonald's (MCD - Get Report) , Shake Shack (SHAK - Get Report) , and Panera (PNRA) as examples -- he noted that he's never liked the execution at Noodles and there's no reason to own it.
Cramer was asked when the selling in Hain Celestial (HAIN - Get Report) will end, and he responded that the company missed their quarterly numbers and the pain will end if they can deliver in the next quarter. He pointed out the weakness in Hain has also brought down WhiteWave (WWAV) , another Action Alerts name.