Just how bad are Cramer’s critics?
From Financemanila:
MARCH 06, 2007 – The financials are bottoming now.
On the March 11, 2008, episode of Cramer’s show Mad Money, a viewer named Peter submitted the question “Should I be worried about Bear Stearns in terms of liquidity and get my money out of there?” Cramer responded “No, no, no! Bear Stearns is fine! Do not take your money out. If there’s one takeaway…Bear Stearns is not in trouble. If anything, they’re more likely to be taken over. Don’t move your money from Bear! That’s just being silly.
In May 2008, a review by CXO Advisory showed that Cramer’s stock picks have done worse than the market averages.
On January 22, 2008, Jim Cramer was confronted by Rick Santelli on CNBC for Cramer’s bullish perspective over the preceding several months and how this contradicted Cramer’s recent forecasting of a bear market (after significant market drops) and “how things were incredibly dangerous
In August 2007, Cramer called for the Federal Reserve to support hedge funds that were losing money in the subprime mortgage crisis, prompting Martin Wolf, the chief economics commentator for the Financial Times, to accuse Cramer of advocating an offensive and catastrophic “socialism for capitalists”.
MAY 11, 2007 – The worst is baked into the retail stocks
June 13, 2007 – Fed easing is off the table. The market has hit bottom and is ready to roll again.
JULY 05, 2007 – Negative rumors may continue but it’s important that you stay strong. The bears will continue to be wrong. Still see the Dow going to 14,548 this year. This is the season to be in technology
JULY 09, 2007 – We are in a dramatic, runaway bull market. Stocks that go to 80 tend to go to 120. Tech, cable & telecom will work. Oil goes to the mid 80’s.
JULY 10, 2007 – Even with the selloff, minerals are in total bull market mode.
JULY 13, 2007 – The move in tech is for real. Am begging you to buy tech!
JULY 25, 2007 – Over the next few months there’s just a huge amount of money to be made owning the technology stocks. Now’s the time (USE KEYWORD “HORSEMEN” TO SEE Cramer’s FAVORITE TECH STOCKS). The refiners’ margins are being squeezed
JULY 26, 2007 – The selling today was pure fear – but 500 points on the Dow may not be enough. Would sell anything mortgage or corporate credit related.JULY 27, 2007 – The banks, brokers and homebuilders look cheap but the earnings estimates are too high and will be slashed. We want to buy stocks of companies that have just beat the numbers and have taken damage in the sell-off.
JULY 30, 2007 – The market will go up again tomorrow as the institutions buy stocks at the end of the quarter to make their performance look better.
JULY 31, 2007 – The worst case scenario keeps playing out – you have to sell the financials on any strength.
AUGUST 02, 2007 – The Dow is going up when it should be going down.
AUGUST 03, 2007 – The markets will stabilize. Until then, preservation of capital is a priority. Want you to stay in the game.
In April 2007, Credit Bubble Stocks criticized Cramer because of a speech he gave on February 29, 2000, at the height of the dot-com bubble, recommending a number of speculative stocks that ultimately fell in value substantially with some even becoming worthless.
In March 2007, Joseph Parnes, a 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.
- In February 2000, Cramer proclaimed that Internet-related companies “are the only ones worth owning right now.” These “winners of the new world,” as he called them, “are the only ones that are going higher consistently in good days and bad”.
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.”
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