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.