 | In recent months, we have seen a rapid increase in the number of posts and comments about Jim Cramer. These posts often get a lot of attention. A few examples: My thesis is that although some posts are funny, we should probably avoid rewarding someone like Cramer, who is deliberately trying to cause other people to lose money for his own gain. We follow this line of reasoning by largely ignoring social media clowns, who also try to get attention and to earn money off other people’s losses, but for some reason do not apply it to Jim Cramer. Who is Jim Cramer?Jim Cramer is an “American television personality and author” and “the host of Mad Money on CNBC” (Wikipedia). He worked as a reporter, worked at Goldman Sachs, had his own hedge fund, started a popular financial website, and later moved into television. Jim Cramer is notoriously famous for making bad calls. Hence the popularity of the “inverse Cramer”, which boils down to the idea that if Cramer is bullish, we should sell, and if he is bearish, we should buy. Jim Cramer’s just wants engagement and other people (retail) to lose moneyMy key thesis is that Cramer giving bad advice is not a coincidence. It is his way of getting earning money (engagement) and pleasing his institutional friends, who also profit off of retail making poor investment decisions. Cramer appears like a silly guy that is not that intelligent, but he is smarter than one might think, particularly when it comes to the world of finance. He graduated magna cum laude from Harvard, has a lot of institutional friends, and has a lot of experience in the world of finance. His annual salary at CNBC is reported to be $5 million and his net worth is estimated to be $150 million. Cramer is commonly bullish at tops and bearish at bottoms. That is not a coincidence but a deliberate tactic. ill give some examples below. Example 1 - Crypto, Solana, and LTC (stimulate selling low)On December 24, 2022, Jim Cramer tried to get people with Solana and Litecoin to sell. He generalized this to the entire crypto market. This advice conveniently happened when SOL was 96% down and just before the rally (225%). See the chart below, where the blue vertical line is the moment of advice. A similar story applies to Litecoin. Litecoin will have its halving soon and generally does well around that time. Cramer’s advice was made while Litecoin was retesting a key breakout level and just before a relatively big rally. Actually, a few days later, crypto started to rally like mad, regaining the losses since FTX. Example 2 - Bullish at crypto ATH (stimulate buying high)Example 1 is even more ironic given that he was bullish on crypto two weeks around the all time high. Jim Cramer said (October 30, 2021) was proudly sharing that he invests in crypto and that he was holding ethereum, expecting prices to rise. 13 months of pain followed. Example 3 - MetaJim Cramer does not only does this to crypto. He uses the same approach for stocks. For example, Cramer has been a strong advocate for buying meta since all time high, which long was the worst performing S&P 500 stock of 2022 because it fell 77% since all time high. So many people followed Cramer's advice while Meta performed so poorly, that Cramer was forced to apologize. To conclude, I think he is a bad actor and not by coincidence. It might seem funny, but very similar to social media clowns like Bitboy and The Moon Carl, he just wants engagement and to make money off us in the crypto space. In my view, these types of people are better left ignored until they go away. [link] [comments] |
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