Tuesday, November 08, 2005

Truth in Advertising

Jim Cramer is all over the place lately, TV, Radio, RealMoney Blogs, CNBC specials and apparently yet another book. One would think he adds something to the quest for the holy grail of stock trading and/or investing. His legion of followers seem to either love him or hate him. Why the disparity of opinion? Rank ignorance. Let's fix it right here, right now.

Cramer runs a trading service called Action Alerts PLUS. Lets use this service to evaluate Cramer, since the only true objective test of his expertise is his actual documented performance.

Year-to date, the S&P 500 index is up 0.50%. Against that benchmark, Cramer's YTD return is up 4.38%.

Let's look at this two ways. One, Cramer is beating the market averages by about 9 fold. (9 X .50 = 4.5%) The other way, the way I look at it, is that for all his bluster, the guy is barely beating out a 5-year bank CD.

'Nuff said.

A

3 comments:

gary shields said...

Thanks for the cramer input allan, just a SHOWBOAT to sell advertising...reminds me of Dan Dorfman from years ago.Where is he today?Also thanks on NNVC up a bit from 8.5 cents, Gary

Anonymous said...

Check out Cramer's TV show picks for free:

recommendations are audited daily at

http://booyahboyaudit.com/performance.html

Ross

Arian said...

haha yeh i was led to booyah's site after cramer trashed a company i owned a small position in. he is god awful. hell recommend stuff. and maybe because of him, itll go up 1 day, but then itll tank, and hell call the stock a lame duck and say to sell. i dont think hes a good fundamental guy as much as those Motley Fool Hidden Gems guys. those guys picks are pretty decent and will give u their track record on recommendations

,
Arian