Cramer's Mad Money - 25 Rules for Defensive Investing (8/14/09)

Stocks discussed in the in-depth session of Jim Cramer’s Mad Money TV program, Friday August 14. Editor's Note: The following episode of Mad Money Last aired on December 30, 2008

In Jim Cramer’s Mad Money Show, he outlined 25 rules that he says will help investors play the markets defensively to avoid big losses and keep their money safe.

1. Stay Diversified. Cramer said diversification is the only free lunch in investing. He advocated not having more than 20% of your portfolio in any sector and avoiding having “two-of-a-kind” sectors/stocks at all costs. He recalled investors losing fortunes in the past when they sank all their money in hot stocks of the day such as dot.coms, telcos and energy merchandisers like Enron.

Complete Story »