"A deception carried out for the sake of publicity."
It won't come as a surprise to anyone who is trying to make a buck in the stock market that there is a lot of hype out there seeking to separate us from our money. A few blogs ago, I suggested that readers click on some of the ads atop my blog and see if there is anything worthwhile up there. The first two ads I clicked on were Fred Hager and Jim Cramer. The former advertised that his portfolio was up 150% in 2004. True. But YTD 2005, four of his top picks, EBAY, QCOM, RMBS, and ERES are down a collective 27%. Ouch.
As for Slim Jim, his Action Alerts portfolio is down 2.88% YTD, ahead of an S&P which is down 4.93% YTD. Is this a reason to subscribe, to lose less then the market averages?
Now I am a subscriber to both services, but not for their long term stock picks. Since both services can move markets at times, or at least individual stocks, it does pay me to be abreast of their alerts. But barely so. Is there something of value here for the individual investor? Hard to say. Hager does a thorough analysis of his stocks and maybe ultimately his long term buy and hold the best of the best philosophy may win out. We'll know in a few years, or by the end of this decade, if you can wait.
As for Slim Jim, as I pointed out to a friend recently, he is like driving by a bad car wreck, you know it's gruesome, but you just have to look and then spend the rest of the day kicking yourself for being so senselessly repulsed.
Yet the quest goes on and I still recommend clicking away at the Google ads, seeing what's out there and reporting back if anything seems worthwhile. In the meantime, one service that doesn't appear in the ads that I have had some success with, not blindly buying their recommendations but getting leads and ideas from their picks, is BI Research. No hype, just good analysis and a slate of stocks you may not hear about elsewhere.