CNBC's Jim Cramer said that it's an opportune time for investors to start buying gold, high-yield and medical device stocks after the market took another dive on Tuesday.
"I know I'm early, but you can't wait until the selling ends before you start building a position," the "Mad Money" host said.
The Federal Reserve issued an emergency interest rate cut earlier that day — dropping the benchmark funds rate to a target range of between 1% and 1.25%, down from 1.50% to 1.75% — though it did not comfort investors concerned about the spread of the coronavirus. The three major indexes all plunged almost 3%, one day after rallying about 5%.
"You're not going to nail the bottom, which is being caused by the illness," Cramer said, "but there are opportunities [to buy] here, and otherwise just a lot of stocks to sell because ... it's bad out there."
He pounded the table on buying gold stocks, calling them the "ideal insurance policy for your portfolio" in times of economic uncertainty. Barrick Gold and the SPDR Gold Shares ETF are two securities the host pointed out.
"When rates go this low, you reignite ... [the] rally in gold, which soared today," Cramer said. "I would buy gold aggressively on this rate cut — aggressively — especially as protection against whatever horrific predictions made the Fed want to take such a drastic move today."
Cramer also recommended that market players go shopping for dividend stocks that pay "bountiful yields," along with medical device stocks that have sold off.
"If [Sen.] Bernie Sanders wins [the Super Tuesday primaries], I expect the drug stocks to be hammered mercilessly," Cramer said. "I think you should buy them into that weakness because ... Bernie's agenda will never pass Congress."
As for medical device plays with "zero economic exposure," DexCom and Medtronic are two good picks, Cramer said. DexCom shares are down 10% from their Feb. 20 close, and Medtronic shares are down 17% from their Feb. 6 close.
"These ones will come back when the S&P futures stop dragging down the entire market," Cramer said.
Disclosure: Cramer's charitable trust owns shares of AbbVie.