Jim Cramer freaking out and making some sense

[DOMS]

I don't like his screaming style. It is obnoxious to me. Plus, some outside criticisms of him:

• (1) In January 2006, Joseph Nocera opined that the "people who are watching [Mad Money] and following [Cramer's] advice are fools." [2]

• (2) In February 2007, Henry Blodget -- himself indicted for civil securities fraud in 2002 and banned for life from the securities industry -- criticized Cramer for overstating his abilities as a market forecaster, noting that in 2006 Cramer's suggested portfolio lost money "despite nearly every major equity market on earth being up between about 15 percent and 30 percent." [23]

• (3) In March 2007, a review by CXO Advisory showed that Cramer's stock picks have done slightly better than the market averages.[24]

• (4) In March 2007, Joseph Parnes, noted short seller featured in Barron's, refuted positions by Cramer on CNBC, and has shown to his audience in his publication Shortex that using positions contrary to Cramer's recommendations is actually more advantageous

My take:

1. An opinion is like an asshole, everyone has one.
2. So? It's not like Jim is going to everybody's house and putting a gun to their heads and telling them to hit the side-lines.
3. They're probably including the Lightening Round. That's where Jim gives his very brief opinion on a variety of stocks. Or are they talking only about the first segment of Jim's show?
4. It sounds like a pundit is trying to leech off another pundit's fame. Again, the details are lacking.

Really though, it all comes down to two things:
1. If Jim really isn't any good, then the people will quit listening to him and go elsewhere. Money lost is money lost. Yet, this hasn't happened in several years.
2. Jim makes it clear, time and time again, that the home investor needs to do their own home work. His motto isn't "buy and hold", it's "buy and homework". Which he helps with in a one week special segment that he did for his show and through his books.

Jim never says that you should blindly follow his advice. He's said, both on teevee, and in this books, that doing so would be stupid (he's actually used that exact word on his show). Jim does what any good stock adviser does: he gives leads and general information.

Personally, I think that most other pundits dislike him simply because he's so famous. It's simply envy. I like him for the leads that he gives. I also like him because, unlike 99% of all other pundits, he actually says to do things. He doesn't just give vague ideas and thoughts about a stock, he says "buy", "hold", and "sell". He puts his reputation where his mouth is.

 

[DOMS]

That sounds cool.

I have the Roth at Fidelity, and I only invest with mutual funds. The rollover is at Scottrade, and is entirely in stocks. Evenually I will move the Roth to Scottrade, and invest in stocks only. Still can't short though. I thought that was a SEC rule, but I'm not sure.

I'm pretty sure that most retirement account prevent you from shorting. There's just way too much downside. But, oddly enough, they'll let you write naked calls. Crazy.

 

[JerseyDevil]

My take:

1. An opinion is like an asshole, everyone has one.
2. So? It's not like Jim is going to everybody's house and putting a gun to their heads and telling them to hit the side-lines.
3. They're probably including the Lightening Round. That's where Jim gives his very brief opinion on a variety of stocks. Or are they talking only about the first segment of Jim's show?
4. It sounds like a pundit is trying to leech off another pundit's fame. Again, the details are lacking.

Really though, it all comes down to two things:
1. If Jim really isn't any good, then the people will quit listening to him and go elsewhere. Money lost is money lost. Yet, this hasn't happened in several years.
2. Jim makes it clear, time and time again, that the home investor needs to do their own home work. His motto isn't "buy and hold", it's "buy and homework". Which he helps with in a one week special segment that he did for his show and through his books.

Jim never says that you should blindly follow his advice. He's said, both on teevee, and in this books, that doing so would be stupid (he's actually used that exact word on his show). Jim does what any good stock adviser does: he gives leads and general information.

Personally, I think that most other pundits dislike him simply because he's so famous. It's simply envy. I like him for the leads that he gives. I also like him because, unlike 99% of all other pundits, he actually says to do things. He doesn't just give vague ideas and thoughts about a stock, he says "buy", "hold", and "sell". He puts his reputation where his mouth is.

I didn't say I neccessarily agreed with this, as you said, it is those people's opinion.

That is what I like about Jim Jubak. He posts his portfolio's and tells you when to buy and sell, plus the reason you are buying or selling. If he is putting into his personal portfolio, he discloses that too. I pay special attention to those, since he is putting his own money where his mouth is. This man has made me quite a bit of money over the last 2-1/2 years when I started following him. I do not follow every recommedation, and some picks I just don't feel good about. But he seems to know the hot sectors. Jubak's Journal -- Jubak's Picks - MSN Money

 

[bigss75]

Like I said before I like Jim Cramer for the interest he has brought to stock market. But anyone who blindly follows stock picks of "experts" is a complete idiot wheither it be Cramer, Jubak or Buffet.

 

[danzik17]

I can definitely see the market taking a plunge sometime soon, which is why I'm looking into investing a bit of cash into silver/gold. Also decided rather than dumping a large amount into the market right now, I'm going to do dollar cost averaging since I'm banking on the market heading south soon, and I want to get in cheap.

Are Cramer's books any good? I've been looking for some good investment books to read to learn about some of this stuff.

 

[DOMS]

I didn't say I neccessarily agreed with this, as you said, it is those people's opinion.

Are you laughing at me?! Don't make me come over there!!!

That is what I like about Jim Jubak. He posts his portfolio's and tells you when to buy and sell, plus the reason you are buying or selling. If he is putting into his personal portfolio, he discloses that too. I pay special attention to those, since he is putting his own money where his mouth is. This man has made me quite a bit of money over the last 2-1/2 years when I started following him. I do not follow every recommedation, and some picks I just don't feel good about. But he seems to know the hot sectors. Jubak's Journal -- Jubak's Picks - MSN Money

Thanks, I'll give him a shot.

So, do you just to stocks, or are you also into options?

 

[Burner02]

Their doing it now that the Denver Housing market is going down the crapper

if I read correctly, Greely is #1 in forecloseures in Co...and Colo. Spgs passed Denver in Foreclosures...

 

[bigss75]

if I read correctly, Greely is #1 in forecloseures in Co...and Colo. Spgs passed Denver in Foreclosures...

I didn't know that, don't know why anyone would want to live in Greeley to begin with.

 

[NordicNacho]

I can definitely see the market taking a plunge sometime soon, which is why I'm looking into investing a bit of cash into silver/gold. Also decided rather than dumping a large amount into the market right now, I'm going to do dollar cost averaging since I'm banking on the market heading south soon, and I want to get in cheap.

Are Cramer's books any good? I've been looking for some good investment books to read to learn about some of this stuff.

Checkout Roth's book "One up on Wall Street" a truly great book.

 

[JerseyDevil]

Like I said before I like Jim Cramer for the interest he has brought to stock market. But anyone who blindly follows stock picks of "experts" is a complete idiot wheither it be Cramer, Jubak or Buffet.

Totally agree. When I said I 'follow' Jubak, I just meant I read his columns and analyze his stock picks for ideas. For every 10-15 buys in his Jubak's Picks, I probably actually buy 2 or 3. Of course I follow my own leads, but most of my portfolio are stocks that at one point were recommended by him. Last year I was up 23%, and this year before this correction up 31%.

 

[JerseyDevil]

Are you laughing at me?! Don't make me come over there!!!

Thanks, I'll give him a shot.

So, do you just to stocks, or are you also into options?

Not laughing at you, laughing with you my friend .

Yeah, just stocks. I don't know much about options. Maybe you can enlighten me.

 

[DOMS]

Not laughing at you, laughing with you my friend .

Yeah, just stocks. I don't know much about options. Maybe you can enlighten me.

Here's a very basic definition of what options are. You can learn the basics online, for free, over at 888options and the Chicago Board of Exchange, which is the biggest options exchange in the world.

I like options because they require less money, which leads to a better ROI, and because they simply offer more options than stocks. Consider that, if a stock is trending sideways, you can't do anything to make money if you're just selling, or shorting, stocks. With options, you could do a calender spread, or several other strategies.

 

[Burner02]

I didn't know that, don't know why anyone would want to live in Greeley to begin with.

The university is the draw tothat cow town, isn't it?
I used to date a cop in Loveland...and the scent of cow...shite...was...well...you know...

 

[DOMS]

Totally agree. When I said I 'follow' Jubak, I just meant I read his columns and analyze his stock picks for ideas. For every 10-15 buys in his Jubak's Picks, I probably actually buy 2 or 3. Of course I follow my own leads, but most of my portfolio are stocks that at one point were recommended by him. Last year I was up 23%, and this year before this correction up 31%.

I have a client who's wife routinely makes $70,000 or more in profits every year. And that's after paying out $30,000 in commissions. What's her methodology? He said that, based on the way she trades, that she get her advice from the dog...

 

[JerseyDevil]

Remember the dart throwing chimp?

Wall St chumps lose out to chimp | The Register

 

[DOMS]

Remember the dart throwing chimp?

Wall St chumps lose out to chimp | The Register

Yeah, I remember the chimp. You've gotta love the associated article, "Brokers challenged to spank the monkey".

I doubt it was really an unbiased test. They picked 133 companies for the chimp to choose from, for starters. But it is funny as hell.

 

[NordicNacho]

Down 240 today this shit must be driving the day traders nuts.

 

[DOMS]

Down 240 today this shit must be driving the day traders nuts.

Yeah, I don't think that many people know what to do. Hell, the put/call ratio yesterday was 1.01. Practically flat.

I just placed a bear put spread on Molson Coors Brewing Company. I bought 1 Jan08 85 put for $6.90 and sold 3 Jan08 75 puts for $9.00. That's a $2.10 credit! And I've got to January 21st to be right!

God, I love volatile markets!

 

[Doublebase]

I thought it was 380.

 

[DOMS]

I thought it was 380.

Yep, the final for the day is -387.18, but NordicNacho posted at 12:30 MST.

 

[danzik17]

Beautiful, go down much, much more before I buy some mutual funds in a couple days. Then go up.

It's a flawless plan.

 

[DOMS]

Or it goes down more...

 

[danzik17]

That is not part of my plan.

 

[DOMS]

 

[JerseyDevil]

The only thing that saved my ass today was one of my stocks went up 24%. MXWL.

 

[NordicNacho]

Beautiful, go down much, much more before I buy some mutual funds in a couple days. Then go up.

It's a flawless plan.

Get a Roth IRA everyone should have one that qualifies for it and start early compounding intrest is a cool thing.

Roth IRA - Wikipedia, the free encyclopedia

 

[I Are Baboon]

I read an article in a magazine recently where the author invested fake money two ways: By following this guy's advice, and by throwing a dart at a dartboard. The dartboard did better.

 

[Big Smoothy]

Just save up your cash their are going to be a lot of deals in the next few years. [v]I've put all my roth money in a Gold Mutual Fund cause I think the dollar is going to go down, way down.[/b]

May I ask what Gold Fund, NordicNacho?

I am interested in putting some of my Roth stuff into gold perhaps.


Thanks if you want to answer here or send me a PM.

 

[BoneCrusher]

Here's a very basic definition of what options are. You can learn the basics online, for free, over at 888options and the Chicago Board of Exchange, which is the biggest options exchange in the world.

I like options because they require less money, which leads to a better ROI, and because they simply offer more options than stocks. Consider that, if a stock is trending sideways, you can't do anything to make money if you're just selling, or shorting, stocks. With options, you could do a calender spread, or several other strategies.

Sounds like you are really getting this down DOMS. So how much do I need to invest to clear $100,000 in a year? Remember I'm a dumbass and will only understand half of what you say.

"@%%^^ invested in a @4%$^6^$ 665 at #%^&^ %*)(&$% will yield #$#&"

Kinda like Charlie Brown in class ... Whaa waaa whaaa wawaaaa?

 

[danzik17]

Get a Roth IRA everyone should have one that qualifies for it and start early compounding intrest is a cool thing.

Roth IRA - Wikipedia, the free encyclopedia

Actually, I was going to do that and then decided against it on the advise of a financial advisor. He brought up a good point that in a year after I graduate college and get a job, my main focus for retirement funds will likely be a 401k, not a Roth IRA. His point was I would have a maximum of 8,000 dollars in it at that point, and it wasn't worth tying up that small amount of money for like 44 years when I was going to be dumping most of my retirement money into a 401k, and the rest into a normal investment account.