“Forgeddaboudit, we’ll Wachovia money.”
Posted on 10/01/2008 1:53:43 PM PDT by TruthRespecter
CNBC's Mad Money showhost Jim Cramer made an on-air apology last night (9/30/08) for recommending Wachovia stock just 2-weeks ago. His recommendation followed a Mad Money appearance by Wachovia's CEO Robert Steel. On Sept. 15, the day Steel appeared on the Cramer's TV show, Wachovia stock closed at $10.71 per share. On Sept. 29th, it closed at $1.84 per share. Youtube likely has the clip showing Steel's appearance. And last night after Wachovia's implosion, comes Cramer's apology: "I let you down, because I wasn't skeptical enough."
Compare Cramer's "I let you down because I wasn't skeptical enough" statement with America's subprime mess...replacing the persons involved above as follows:
Replace Wachovia CEO Robert Steel saying "we're still strong, everything is a-okay" with current Democrat leadership, epitomised by House Financial Services Committee Chariman Barney Frank (D) saying in response to Republican-led efforts pressing for reform and scrutiny over Fannie and Freddie -- specifically, Barney Frank helped quash preventative reform efforts saying, "No, no Fannie and Freddie are just fine, there's no crisis".
Let Cramer represent past Voters whose votes for Democrats have kept the "too-easy credit" movement alive (even initiated it), grew it, and rebuffed Republican efforts to rein it in before it got out of control. "Votes to keep these guilty Democrats in power have let America down...because they weren't skeptical enough".
Think about it.
http://articles.moneycentral.msn.com/Investing/Extra/JimCramersBadBets.aspx?page=4
Save yourself a lot of time and tax headaches, you'll do just as well, or better, by investing in S & P or total stock market exchange-traded funds.
Cramer = heap big smoke, no fire.
Most of the TV analysts are for “entertainment purposes only”. They say so themselves at the end of each show with a quickly run blurb.
Production meetings are held in order to try to increase the entertainment values of the show. They take that part very, very seriously as that is what drives in advertising.
Do your own due diligence. It is the only answer.
I have bought two stocks on his recommendation and they both tanked. I think he must guy short the stocks he touts. He is a bozo. Give me Dave Ramsey any day.
Does a bear poop in the woods?
Yes, Cramer is a Democrat. He’s buddy-buddy with Spitzer and guys like Marty Peretz.
Thanks for info; and ‘link’. Great one,btw. Never ‘been there’. . .now bookmarked it!
Thanks, have to say, I am getting the message/lol. Truth is again; I always suspected just because of ‘who’ he is. ..and because he ‘looks like one’. . .and then there were the ‘ethical challenges’ - lots of pointers. . .but good to have my suspicions confirmed.
Sorry. It might have been me.
I noticed pretty quickly that Cramer’s stock touts never panned out. So for awhile last year and earlier this year, I developed a strategy where I’d wait for the third day after Cramer touted a stock, then I’d buy puts or put on an outright short.
It makes a lot more money than playing his long ideas.
He is a total LOSER. His ratings are total crap and his knowledge and histrionics are CRAP. But then again he IS on an NBC network so that tells the entire story right there.
Don’t forget...this is former NY Governor Elliot Spitzer’s best friend as well...I remember him being on air CRYING over his situation.
TOTAL F-CKING LOSER!
Great advice, IMO. I send a monthly check to the Vanguard total stock market index fund, as well as their GNMA fund. Been doing that for years, regardless of what the markets do.
I have wondered if he has been consoling boinking Mrs. Spitzer ever since.
Stock timing - the flat earth theory of investing.
I think it was Bob Brinker who talked about a study that showed that if you go 50/50 TSM/TBM like you say, over the long run you’ll beat 90% of the other schemes. Boring, but steady.
My kind of investing!
In that vein, the Vanguard Wellington fund maintains about 2/3 of its portfolio in dividend paying stocks of large and mid-cap companies, plus about 1/3 in government and high quality corporate bonds.
It started life in July of 1929. Despite its difficult childhood, it has had about a 7.5% annualized return over its nearly 70 years.
Er, make that 80 years.
Yup. Not only is retail investor stock picking a bad idea, but it's also a fact that about 75% of actively managed funds (i.e. "professional" stock pickers) underperform their benchmark index after fees and expenses. The evidence further suggests that the vast majority of the remaining 25% have no special skill, but rather are just lucky.
The investor or fund manager who can consistently beat the market is a rare, rare exception. There's only a handful of Warren Buffets around.
That's what I tell my students, too. And that's what I do.
Years ago CNBC had a series where the analyst’s stock performance was published along side of the high school stock club results. It did not last to long because the kids performed as well or better than the stock pickers!
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