RealMoney Radio: Election Fright

Cramer says that a change in the guard may mean taking some off the table and buying back later.
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"Election day is less than two weeks away, but the market is already reacting right now to the possibility of a big Democratic win," Jim Cramer said on his

"RealMoney" radio show Thursday.

"This election has become why stocks go up or down," he said.

Lockheed

(LMT) - Get Report

is getting "killed" today, and big pharma is down as well, Cramer said. In addition, HMOs should be much higher.

To Cramer this means that when people wake up on Nov. 8, the Democrats are going to be in control of both houses.

People should be thinking about whether or not they have the "ability to weather the pain on the possibility of a Democratic takeover," he said. They might need to take some off the table and then buy it back later on.

"Be aware of anything big -- big pharma, big HMO, big defense, big oil. These are all targets," Cramer said. "They require caution until the Monday before the election."

Although "it can be pretty intimidating sifting through stocks and figuring out which ones you want to invest in," there are opportunities out there, he said. "You just have to be prepared and have conviction."

For example, when one of Cramer's "Mad Money" TV show viewers asked him about

Joy Global

(JOYG)

last night during the lightning round, he defaulted to

Caterpillar

(CAT) - Get Report

.

Cramer said there was a time when he would have called Joy Global the "best in show," but then "it missed a quarter down the road, and the Street turned on it."

"It was some turn," he said. "The stock lost more than half its value from the miss and from the errant May

Fed

tightening."

After recommending a swap into Caterpillar, another viewer emailed Cramer Thursday morning and commented on how "mining companies are ramping up production at an unprecedented rate to mine lower grades," which requires a larger number of replacement vehicles and aftermarket services.

Because there are only two companies in this sector: Joy Global and

Bucyrus

(BUCY)

, the viewer asked how Cranmer could not recommend Joy Global.

Cramer believes that the viewer is right and that there is a "tremendous scarcity of assets in this group."

Although he wanted to be consistent with his Monday recommendation of Caterpillar, "things are still smoking" at Joy Global and "the stock is worth recommending," Cramer said.

The real lesson here is that there are opportunities, Cramer said. "Stay at the table."

To see the most recent edition of The RealMoney Radio Recap in its entirety, please click here. This recap is published every day around 3 p.m. ET.

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