The decline in drug and biotech stocks took away Jim Cramer's breath on Tuesday. He pinned the decline to uncertainty surrounding the presidential election.
The staggering fall of Gilead to $73, down from a 52-week high of $111 left him speechless. The company has made fortunes on its Hepatitis C treatment, and yet the stock still trades at six-times earnings.
How is that possible?
"I almost hesitate to answer this question because it touches on the third rail that is politics … Hillary Clinton's bite could be every bit as bad as her bark when it comes to controlling drug pricing," the "Mad Money" host said.
On a tough day, stocks in most sectors were tough to own. The only silver lining Cramer found was that when there is usually nowhere to run and hide in a big sell-off, bargains will surface on the second day, with technology giving investors the biggest bang for their buck.
Cramer's top picks were companies that try to dominate in social, mobile, cloud, the internet of things, augmented reality or artificial intelligence. That is why he likes Salesforce, which he says needs to find a deep-pocketed partner to help defer the cost if it decides to acquire Twitter.
"It's important not to be too big a slave to any one day, because otherwise with the S&P 500 selling off badly and at a three-week low, you'd think 'who needs this?' The answer is someone who wants to make money a little longer term, that's who," Cramer said.