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Cramer finds the one investable common ground that Clinton & Trump agree on

Hillary Clinton and Donald Trump may not agree on much, but Jim Cramer found that they are practically on the same page when it comes to national defense.

"Look, this shouldn't be a surprise. Every election year, defense is always the one thing that the Democrats and Republicans agree on. No politician wants to be accused of being weak on defense," the "Mad Money" host said.

Every four years, Cramer knows he can anticipate candidates revealing plans of beefed-up defense spending. In fact, in every election year since 1992, the S&P Aerospace & Defense Index has outperformed the broader market in the fourth quarter.

Cramer expects this cycle to be no different. Trump plans to repeal the defense sequester, which would likely restore $500 billion in defense-related spending over 10 years. He also indicated he would increase the size of the Army by 90,000 soldiers, expand the Marine Corps by more than 55 percent and strengthen the nuclear, missile defense and cyberwar capabilities.





Photographer | Collection | Getty Images

Clinton wants to end the sequester for defense spending, too, although she has been less specific about what she wants to spend the additional money on for equipment.

Cramer found that Clinton is more widely viewed as being hawkish than President Barack Obama, so when she said she wants to invest in innovation to prepare for and fight 21st-century threats, he interpreted that as meaning business for defense contractors.

His top pick in defense was with Lockheed Martin, which reported a strong quarter recently and gave a bullish outlook for 2017.

Cramer also liked Northrop Grumman, which is another high-tech aerospace and defense play. It remains unrivaled when it comes to making drone aircraft.

"Hillary Clinton and Donald Trump may not agree on much, but they are both committed to shoring up our nation's defense capabilities, and at the end of the day, that means more business for defense contractors," Cramer said.

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