Comments on: Jim Cramer’s stock picks do not weather market downturns well

By: mlgreen8753

mlgreen8753 — Sun, 27 Sep 2009 04:09:43 +0000

Jim Cramer isn't the most popular stock picker these days. I will rather go with my own pick in Mentor Capital (MNTR), which I have done the research on, than to listen to someone who is wrong more often than not according to the every blogger who's followed his advice.

By: Lam

Lam — Wed, 12 Mar 2008 22:18:08 +0000

I enjoyed reading your article and I couldn’t agree more with you. I feel EXACTLY the same about Jim Cramer which is why I stopped watching him last year. Thank you for your data!

Good luck and may you have a strong investing future.

By: Jeff V

Jeff V — Wed, 20 Feb 2008 15:42:46 +0000

If I remember correctly, Jim Cramer is a former hedge fund manager himself (that might not be correct). This just shows once again that the markets are pretty darn efficient all things considered.

I think hedge funds have become a country club investment tool. It is such a status symbol to be able to invest in a hedge fund (which typically has a minimum investment of 1,000,000 which usually is not available for liquidation for quite some time).

It is also interesting to think that even in the time where Cramer was “outperforming” the market, his portfolio probably had a much higher beta (basically a risk coefficient) than the market’s beta of one because of he types of stocks he favors. So although he had a higher return I would imagine his risk to return ratio is much worse than the markets risk to return ratio for the same period.

Thanks for the update!

By: Cyde Weys

Cyde Weys — Wed, 20 Feb 2008 02:19:09 +0000

Incidentally, at the beginning of 2007, Jim Cramer predicted that the Dow Jones Industrial average would be at 14,600 by the end of 2007. It currently stands at 12,300. I would definitely say he’s guilty of being overly optimistic. Of course, the housing market downturn is what really killed his prediction, but in the long run, downturns happen fairly frequently. You need a stock picking strategy that performs well in all market conditions because all market conditions eventually do occur. A stock picking strategy that only performs well during bull markets is not sane investing.