If you watch Jim Cramer for investment advice… prepare to be disappointed.
CNBC’s Mad Money is one of the channel’s more entertaining segments.
But it is simply that – entertainment.
Whatever you do… do NOT follow his advice.
Cautionary Tales
In January, Cramer urged his 1.8 million Twitter followers to buy Netflix (NFLX).
It hasn’t worked out well.
But this is far from his worst pick…
Bear Stearns
In March 2008, he recommended Bear Stearns stock during the “Buy or Sell” segment of his show.
He said, “I believe in the Bear franchise. You know what? At 69 bucks, I’m not giving up on the thing!”
Eleven days later, it was trading at $2.
DiDi Global
“If you want to speculate on a Chinese IPO, you’ve got my blessing to bet on Didi. I would try to get as many shares as you can,” he said when DiDi Global Inc. (DIDI) went public last year.
It opened up at $14. Today, it trades for $1.93.
Coinbase
“We like Coinbase to $475,” he tweeted in April 2021.
Today, Coinbase Global, Inc. (COIN) trades at $148 – 60% below its November high.
But this is my favorite Jim Cramer quote…
Tesla
He recommended avoiding Tesla, Inc. (TSLA) for the long term when it went public.
“I think it’s going to be a bad company,” he said.
Good call Jimbo.
Tesla, Inc. (TSLA) stock is only up 25,025% since then. Let’s wait for the pullback.
Cramer also has a tendency to flip-flop on his positions…
Apple
On April 11, he recommended selling Apple Inc. (AAPL).
The next day, he said to buy it.
No earnings announcement. No major news.
The stock simply went up 1%, and that was apparently enough to sway the Mad Money host.
No Easy Task
In Cramer’s defense, his job is not easy. It is a lot of pressure making big calls on live television.
I know first-hand… I used to do it.
But if my track record was as bad as his, I would have gotten off the air years ago.
So, the point is this…
Don’t listen to the talking heads on Fox Business, CNBC or any other mainstream media outlet.
Their jobs are to entertain, not make you money.
They are great at telling you what just happened. But they are terrible at predicting what is about to happen next.
The Real Market Movers
While no one on TV can truly tell you what the market will do next, there is a group of real investors who have great power to move the markets.
I’m talking about institutional investors… These are pension funds, mutual funds, hedge funds and other large players.
These folks make massive institutional buys that fly under the radar of most individual investors.
But if you know how to spot those buys in real-time, you can potentially follow the big money to big gains.
This is what I focus on inside my premium Stealth Trades research service.
Embrace the surge,
Ross Givens
Editor, Stock Surge Daily
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