Even in a bull market, Cramer said Tuesday, there are going to be pullbacks. For that reason, the "Mad Money" host recommends owning at least one, truly defensive stock.
Consider MedcoHealth Solutions , for example. A pharmacy benefits manager, it administers prescription drug plans for employers and insurance companies. It uses its clinical expertise to pick the best medications and uses its bargaining power to secure the lowest price. As more prescription drugs go off patent, other companies can create less expensive, generic versions to Medco's benefit. Roughly $31 billion worth of U.S. branded drugs sales will go generic next year, Cramer said.
On Tuesday, Medco reported in-line earnings, better-than-expected revenues and reaffirmed its guidance for 2011. Despite this, its stock fell on Tuesday. Cramer thinks the pullback is a great time to buy shares, but to hear more about what's ahead for this health care company, he invited CEO David Snow onto "Mad Money." Watch the video to see the full interview.
When this story was published, Cramer's charitable trust owned MedcoHealth Solutions.
Call Cramer: 1-800-743-CNBC
Questions for Cramer? email@example.com
Questions, comments, suggestions for the Mad Money Web site? firstname.lastname@example.org