In this volatile market, Cramer on Friday recommended home gamers invest in domestic companies with little international exposure, no generic competition and have the support of President Barack Obama.
Take medical device stocks, for example. Cramer thinks it's a great place to speculate given the U.S.'s aging population. After all, there are 78 million baby boomers, who may eventually need joint or hip replacements, pacemakers and the like. In addition, the U.S. Food and Drug Administration has begun approving devices at a faster pace than it once had, Cramer said.
In the cardiac group, Cramer's fave spec pick is Heartware International. The Framingham, Mass.-based company makes devices used in patients awaiting heart transplants.
Hearth disease currently affects 5 million people in the U.S. and costs its health care system roughly $37 billion, Cramer said. What's worse is that some 300,000 people die from heart failure every year, he added. Heartware makes a left-ventricular assist device, which helps keep people alive while they wait for their heart surgery.
There is another play on the LVAD, Cramer said. Pleasanton, Calif.-based Thoratec also makes LVAD, but its product has already saturated the $200 million bridge-to-transplant market in the U.S.
Cramer thinks Heartware is the better play, though. Its HVAD product gained approval from Europe in 2009 and it expects a decision from the FDA by the fourth quarter. He thinks FDA approval is likely being as it's already had a successful trial run. HVAD is seen by many as the superior product, Cramer said. Being as it's a smaller device, it is easier to implant. According to a study, Cramer said the survival rate for Heartware's product was 90 percent versus Thoratec's 78 percent.
But that's not all. Cramer has another small cap speculative play in this space. To find out which stock he's recommending, watch the video directly above.