In a not-so-shocking analysis of one of the most-watched TV investment advisers, author Eric Tyson argues that Jim Cramer’s actual stock-picking performance doesn’t match the strength of his bellowing. Besides his show Mad Money, Cramer is all over CNBC dispensing investment advice left and right. He’s got to be out-performing other investment advisers and especially the market, right? Not really. Tyson points out that Cramer’s past hedge fund results (the basis for his claim of investment success) have never been audited or independently verified. Then Tyson starts his assault on Cramer’s more-trackable public stock recommendations with the following:
“There is a web site, yourmoneywatch.com, which, unbelievably, tracks all of the stock recommendations on Cramer’s television show. The web site is operated by Michael McGown who has been tracking Cramer’s television show picks since July, 2005. Over that time period, Cramer’s picks, after being held accountable for trading fees, have performed worse than the broad market averages. His overall average with simply picking stocks that go up is pretty dismal. The most recent tally shows that out of more than 1500 stock recommendations, more than half have gone down!”
Also:
“CXO found that Cramer’s stock market predictions (monitored from 2000 onward) were worse than average and even worse than simply flipping a coin. Cramer’s prognostications fared better than the market averages only 47 percent of the time. Regarding Cramer’s predictions, CXO comments that, “His predictions sometimes swing dramatically from optimistic to pessimistic, and back again, over short periods. It is difficult to infer his guiding valuation theory, if he has one. We wonder whether he tends to be swayed by the arguments of forceful advocates with whom he most recently interacted…He seems more a stream of uncalibrated opinion than a stock market maven.”
Finally, Tyson includes a link to a video where Cramer, “boldly proclaimed that the stock market lows hit in mid-July marked the end of the stock market’s downturn!” We all know what’s happened to the market since then — July was certainly not anywhere near the low point.
There you have it…is anyone surprised?
People actually watch this clown? Just do some of you own research and use your brain and maybe read a book or two and you won’t have to listen to this incompetent blow hard asshat.
A few years back, O’Reilly interviewed Jesse Ventura. When O’Reilly started a sentence with “As a journalist…”, Ventura said: “You’re not a journalist, you’re an entertainer.”
So with Cramer, Limbaugh and/or Olberman. Comedians all. They just missed the borscht belt era, where they would have received better training!
If there is one thing every single one of these “Stock Experts” have taught us, is that they’re not.
We’re teaching this stuff in schools and giving out doctorates on the subject. Yet no one in the business world applies enough common sense to it in the real world to spot obvious ponzi schemes, monopolies, and out right theft on national scales have some pretty drastic consequences.
What’s the big surprise, it should be obvious by now that no one can predict the future.
Check out Don Harrold… He’s been on Cramer’s ass for a while..
http://www.youtube.com/user/donharrold
How anyone could watch this guy for more than 30 seconds without changing the channel is beyond me. Anyone vacuous enough to stay tuned deserves go go broke.
If his track record were good he wouldn’t need a TV show.
With the exception of Dvorak, Cramer gets it right in his craft more than any current tech journalist.
Not that Dvorak has an amazing record or anything, but he has not been outlandishly wrong like every other person who fashions them self a tech journalist.
While Cramer’s still an idiot, saying he does worse than the indexes doesn’t say much. Most mutual funds do worse than the indexes, and these are supposedly professionals.
I would think that not knowing his butt from a hole in the ground would be typical of the people hired to give out stock advice on the air.
If he was actually any good at picking stocks he’d be making his money that way.
Or you could start your own business and fuck Wall Street.
Thanks for ripping off the entire article by someone else. Isn’t the purpose of a news blog to show a “little” snippet? I’d much rather the actual creator of the article get the ad revenue then this website.