Cramer Has a Credibility Problem

Posted By Tate Dwinnell |  Subscribe in a reader | Comment 7

I’ve avoided Jim Cramer bashing here on this blog because he gets it from all sides elsewhere but I wanted to post this video from Don Harrold.  Don is a colorful guy and he puts together some great videos that I’ve enjoyed watching over the past several months.  In this video he once again highlights Jim Cramer’s flip flopping recommendation on how to play the market.  I personally don’t have a problem with Jim making a bad call.  When you make that many calls and all eyes are on you, you’re going to have some big misses.  That’s fine, we all make bad calls.  What I do have a problem with is, as Don points out so well, is the constant change of viewpoints.  When the market is rallying and at all time highs he continued to pound the table to buy stocks rather than urging some caution.  Understand Jim you have lots of new investors hanging on your every word.  Be responsible.  Then don’t completely reverse your recommendation after a market selloff.  You’ve lost any credibility you had left.

 

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November 13, 2007

Chris @ 9:37 pm

What a fool. I wonder what he said today about Apple, Baidu, etc… Probably flip-flopped once again!

Aaron @ 9:50 pm

I like Cramer’s show, its certainly entertaining. Having said that, the amount of times that he changes his mind are quite amazing. On a single stock he sometimes changes his mind 3 or 4 times a month, and on the indices he just follows the trend.

Tate Dwinnell @ 10:15 pm

Cramer is a smart guy and there is absolutely some value in some of his research but he’s way too emotional especially for someone that has become a fixture at CNBC. I still can’t believe they had him on right at the open there a few times as the Fed cut rates. Hearing him making statements that the market will have the biggest day ever after that first Fed cut and proclaiming Dow 14500 is incredibly irresponsible. He was right that the Fed cuts fueled a rally but he never cautioned against the dangers of this Fed propped rally and most likely cost people a lot of money. As far as individual stocks I was following his pounding the table on DSX closely because I owned a position myself and purchased for the Model Portfolio. When he was pumping this thing after it had already run more than 30% I knew it was time to dump it. Just feel bad for all those that got into DSX around 45 on his recommendation. It may get back to that point but what an awful place for an entry especially when the market was showing topping action. Note to Cramer: get some technical analysis skills.

November 15, 2007

Chris @ 10:21 am

Tate,
I have met and sat down with Cramer for a research position on his Mad Money team. It didn’t work out but it was great to meet the man behind the scenes. He is very smart and much different in person. We talked about BIDU in April but he didn’t like it – like you say: he needs a TA expert fast! he’s been pumping BIDU lately – six months after I told hime I was a buyer!

I also met several members of his research team, the value guy in particular (what a dope). I was interviewed by this value guy and feel this is the main reason we didn’t see eye-to-eye. cp.com case studies are up more than 40% in 2007 (with just a buy and hold method) while thestreet.com value fool is down for the year. Go figure!

Tate @ 10:29 am

Very interesting Chris. Perhaps Cramer isn’t as smart as we all think.. he dropped the ball by not hiring you. You could have been the TA guy they desperately need. Value analysis is so very limited.

December 27, 2007

BG @ 7:24 pm

If you followed Jim Cramer’s advice and made money then good for you.
I subscribed to his paid service at thestreet.com for one year and loss money. I dumped him and his website without hestitation.

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