Why You Shouldn't Listen to Jim Cramer

"Whatever money you may need for the next five years, please take it out of the stock market right now, this week. I do not believe that you should risk those assets in the stock market right now."
-- Jim Cramer, Oct. 6, 2008, S&P 500 at 1,056.89

Over one year ago and thanks in no small part to the statement above, I concluded that Jim Cramer was a menace to investors.

It only took a few months for the rest of the nation to catch on. Jon Stewart finally jumped on the bandwagon last March, exposing the man for what I think he really is: an entertaining (if not, irritating) media personality, but certainly not the champion of the individual shareholder that he often claims to be.

In fact, I consider him to be the closest thing to a walking, talking hazard for the individual investor there is. Now, Jon Stewart may have the jokes, but I have the real reasons why Cramer is precisely that -- and why you should take a pass on any investment advice he tries to give you.

Thank you, Jon Stewart!
I continue to fully applaud Cramer's stated goal -- help people make money by investing in the stock market. But Cramer's outburst last year was a mistake -- plain and simple. And, as Mr. Stewart so kindly illustrated, it wasn't his first time.

You see, when someone issues panic-inducing market calls (as Cramer does from time to time) -- and urges investors to avoid long-term strategies to buy and hold good companies -- the average investor simply gets crushed.

Cramer's Today show plea was grounded in a sound reality -- Fools should never have money they need during the next five years in the market. But by advising people to indiscriminately sell, he helps contribute to exactly the thing that he's trying to avoid: investors losing money.

Chances are, when the market was taking a chainsaw to some of our more closely held assumptions about the U.S. financial system, most viewers were so petrified that even a very small push was likely to convince investors to join the terrified herds pulling their money out of the market. And pull they did.

Between October and the end of November 2008, investors pulled out a whopping $140 billion from U.S. equity funds. Based on what these funds were holding, they were indirectly pulling out of mutual fund mainstays like Pfizer (NYSE: PFE  ) , Anheuser-Busch (NYSE: BUD  ) , IBM (NYSE: IBM  ) , Chesapeake Energy (NYSE: CHK  ) , and U.S. Bank (NYSE: USB  ) -- many of which had already been hammered.

With the market now priced a bit above last year's "call," what the heck has he done for you? Perhaps he saved you money in the collapse that occurred in the ensuing months. But in order to complete the circle, he would have had to tell these people precisely when to get back in. Where the heck was he on March 6, when we reached the low? He was nowhere to be seen on national television.

Those people who were convinced to run for the hills thus missed out on one of the biggest market rallies ever -- a rally no one saw coming. No matter how good Cramer's first call was, that's 50% he won't be able to give you back. And therefore, it was a huge mistake.

Instead of holding onto the steady blue-chip stocks that have historically provided investors with some of the strongest long-term returns, many investors were just progressively selling at historic lows ... thereby ignoring the sound and sage advice from names like Buffett, Lynch, Graham, Munger, and Bogle.

You don't need a weatherman ...
I'll admit that Cramer is entertaining, but no one can consistently forecast the direction of the market, as he pretends to be able to do. I repeat: No one can consistently forecast the direction of the market. That's the point.

The stock market moves completely randomly and unpredictably over the short term. Therefore, trying to make a "call" on the market won't consistently work out for you. Pick a direction (up or down), and there's a 50% chance of being right -- even though the prediction is rather meaningless.

It's like Punxsutawney Phil. The furry little critter climbs out of his hole, and either he sees his shadow, or he doesn't. Whichever it is, the result has nothing to do with whether winter is over -- just like a stock market prediction has nothing to do with the market's movements.

The scary part is that Cramer flip-flopped numerous times in 2008, trying to call the bottom at various points throughout the year. While CNBC may gloss over this fact, I've taken careful notice. Don't forget about his theory that 2008 would be the year of natural gas. Ouch.

The talking heads on TV get paid to put on a song-and-dance show and attract viewers. It's entertainment, folks. Your education or your personal success, as Jon Stewart as kindly brought to light, is a secondary priority (or not a consideration at all). Following the advice of those that say they can predict the markets is likely to cost you thousands (if not more).

Why?
In the real world, there are commission costs, taxes, and opportunity costs -- all of which have a tremendous impact on the returns that you're likely to experience.

Every time you pull the trigger in your account, think about your broker and the tax-man doing a little touchdown dance. Much of their income is predicated on you transacting as much as possible.

Take a hint from someone who knows a lot about the hidden costs of investing: John Bogle, the founder of Vanguard Investments. He writes: "No matter how efficient or inefficient markets may be, the returns earned by investors as a group must fall short of the market returns by precisely the amount of the aggregate costs they incur. It is the central fact of investing."

Think about that the next time you hear "Buy, buy, buy" or "Sell, sell, sell."

And for those who listened to Mr. Cramer on his "prescient" market call to sell, don't forget that he probably didn't bang on the table loud enough to get you back in on the 50% rally we've just had. Hopefully, you got yourself back in.

The Foolish bottom line
If you want to make money in the stock market, you need to tune out the panic -- or the euphoria. You need to remember that no one has any idea where the market is going in the near or medium term. You need to buy shares of great, built-to-last businesses. You need to hold for the long term. And you need to keep as much money as you can from the tax man or your broker.

That's what we do at Motley Fool Stock Advisor, and it's paying off. Take two of our best stocks, Activision (Nasdaq: ATVI  ) and UnitedHealth Group (NYSE: UNH  ) . We recommended buying shares of these stocks more than six years ago. Both have thrashed the market by incredible margins. I bet we'll continue to hold these two for a long time to come.

What was the cost of doing all this? Probably $24 in broker fees and $0 in taxes. That's a perfect example of what I'm talking about. In fact, our whole scorecard is beating the S&P 500 by 52 percentage points.

As for Cramer ... he undoubtedly has an uncanny knowledge of tickers, prices, and strange catch-phrases. But what he sorely lacks -- and what you must never forget in your investing days -- is temperament. It was Warren Buffett who once said that, "the most important quality for an investor is temperament, not intellect."

Want to see what else we've recommended and what we're recommending now? Click here to get a free, 30-day trial to Stock Advisor -- there's no obligation to subscribe.

Nick Kapur owns shares of Activision. Activision and UnitedHealth are Motley Fool Stock Advisor selections. Chesapeake Energy and Pfizer are Inside Value picks. The Fool owns shares of Chesapeake Energy and UnitedHealth. The Motley Fool's disclosure policy would never suggest it could predict or time the market.


Read/Post Comments (104) | Recommend This Article (110)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

  • Report this Comment On November 16, 2009, at 4:36 PM, NOTvuffett wrote:

    Write something new Nick Kapur, please, how many times can you re-post this trash? Just delete the responses and it is a fresh article again?

  • Report this Comment On November 16, 2009, at 5:25 PM, sellingtheta wrote:

    Nick,

    Cramer needs to be able to say he told people to sell because he believes in market timing and taking profits.

    It is amazing how frequently and quickly he changes his views on the same company.

    I would enjoy reading an article on how Buffett is a market timer (buying when a company in crisis at a depressed price) and knowing how he sells options. Most people are not aware of all the ways he makes money.

  • Report this Comment On November 16, 2009, at 5:25 PM, sellingtheta wrote:

    Nick,

    Cramer needs to be able to say he told people to sell because he believes in market timing and taking profits.

    It is amazing how frequently and quickly he changes his views on the same company.

    I would enjoy reading an article on how Buffett is a market timer (buying when a company in crisis at a depressed price) and knowing how he sells options. Most people are not aware of all the ways he makes money.

  • Report this Comment On November 16, 2009, at 5:44 PM, Fool wrote:

    On Oct 6 2008 Dow was at 9955. In Mar 2009 is was apprx 3,400 LOWER. I would say that makes Jim Cramers advice pretty good. It would have been better had he just said "take it out now" and in March said put it back in and in Dec 09 said take it out again and leave it until the market readjusts. However, those who followed his advice would have avoided considerable losses. And the stock market is way too volatile.

    Reread what his says .. if you need money for the next 5 years take it out of the stock market. I think that was a good call, over cautious but good.

  • Report this Comment On November 16, 2009, at 6:37 PM, nontechie wrote:

    So you are saying Cramer is wrong for being right.

    You might have a point if the market as a whole really moved in accordance with Jim Cramer's pronouncements. But the market these days is not the small retail investors who listen to Jim Cramer. It is huge institutions and funds who have no interest in anything he says and certainly don't dance to his tune. All his "Get out now" advice did was what he intended--convince a few small fry to save their life savings while they still could. And for that he should be applauded. He is not to blame because the institutional elephants were stampeding for the exits and to suggest he was tells me you either don't understand the markets or are among those who is convinced small retail investors should just act as stupidly as the industry thinks they are.

  • Report this Comment On November 16, 2009, at 7:34 PM, scotrmitchell wrote:

    Hey don’t be a Fool… Cramer’s states repeatedly on his show and in his columns “Do your homework.” “Buy and homework not buy and hold” over and over again he talks about doing your “homework.“ What you’re trying to sell (pun intended), if I’m reading the article correctly, is if Cramer’s says sell we sell, if he says buy we buy, if he say jump we ask how high. Listen, Cramer is a true market genius, but he is only one piece of the pie. Use his advise as a point of view and research it; find out if he’s right or wrong, lord knows he's been wrong before, SHLD, but he’s also been right GOOG, DIVX, MMM, that’s just a few off the top of my head I’m sure if I did some HOMEWORK I could find more. My long winded point is- his advice is just that advice it’s not the word of GOD.

  • Report this Comment On November 16, 2009, at 8:15 PM, jghorvath wrote:

    Agree with all above ... check his portfolio ... he's doing well ...

  • Report this Comment On November 16, 2009, at 8:45 PM, feldmail wrote:

    Nick, I think you're jealous. Cramer's advice including his becoming very bullish close to the bottom has been right on!

  • Report this Comment On November 16, 2009, at 9:11 PM, echostar1 wrote:

    Nick you are truly a Fool! How can you get an article so wrong when the facts are lying out in the open? Better yet, how can you possibly expect people to invest with you when you can't even get a simple article right? Investors be afraid, be very afraid.

    I mean honestly, are you really so desperate that you have to resort to tabloid investment tactics to earn a living? Here's some advice, don't give up your day job as you're going to need your tips from the Burger Barn.

    I am not a Cramer devotee and in fact I don't prefer the antics as its just not my style, however, I do read his comments on the web as any fool knows that a rational investor with any hope of making money needs to be willing to give credit where credit is do.

    I was not aware of Jim's call last October but I wish I had been as it undoubtedly saved people millions and contrary to your thesis had nothing to do with the market to crash.

    One thing I do know is that Cramer has been the biggest bull around since the March lows often is a sea of doom and gloom. If you had actually bothered to check your facts it would have been made abundantly clear to even a guy like you.

    Is Cramer always right? Of course not. However, the difference between him and 90% of the people with advice is that he has a refreshing level of self accountability where he is able to admit when he's wrong and learn from his mistakes. This honesty fosters trust as people are will to move beyond mistakes but are not so forgiving of denial.

    Here's an idea, why don't you put your investing track record up against Cramer's for any time period you choose. I'll bet you a year of your Burger Barn tips that you come up lacking just like this article.

  • Report this Comment On November 16, 2009, at 10:13 PM, streetflame wrote:

    This article is stupid. He has made literally thousands of bad calls, yet you are picking on one of his good calls and pretending it was bad.

  • Report this Comment On November 16, 2009, at 10:35 PM, KayZeeDee wrote:

    It's easy to dislike Cramer for what seems like very impetuous and irresponsible comments, but he did say those who "needed" their money in the next five years... if you need that money it shouldn't be in the markets anyway. the problem is that most Fools can read between the lines of what Cramer is saying, but the average Joe Public will hear what Cramer said and think "panic" time!

  • Report this Comment On November 16, 2009, at 10:55 PM, gunlock8 wrote:

    Keep reposting this Nick. Cramer is a menace and he should be exposed for what he is. You articles might have saved hundreds of thousands of dollars for small investors. I know that jerk cost me thousands. Repost, well worth it.

  • Report this Comment On November 16, 2009, at 10:56 PM, gunlock8 wrote:

    Keep reposting, Cramer is a menace and he needs to be exposed for it. You might have saved hundreds of thousands of dollars. I know the jerk cost me thousands himself.

  • Report this Comment On November 16, 2009, at 10:56 PM, gunlock8 wrote:

    Keep reposting, Cramer is a menace and he needs to be exposed for it. You might have saved hundreds of thousands of dollars. I know the jerk cost me thousands himself.

  • Report this Comment On November 16, 2009, at 11:15 PM, comexbackkid wrote:

    Dude,

    Cramer said, and I quote, "This rally's got legs" not 4 days after the rally began. He didn't scream "Buy Buy Buy!" but he certainly urged his viewers to begin putting their money back to work again. Get your facts straight. He made TWO great calls in the last 12 months.

  • Report this Comment On November 16, 2009, at 11:25 PM, echostar1 wrote:

    Hey Nick, by all means don't let the facts get in the way of a good article. This is truly pathetic.

  • Report this Comment On November 16, 2009, at 11:31 PM, MotleyFoolster wrote:

    pathetic. how many times are you going to repost this article? spend 5 minutes and write an original advertisement, er, article.

    and cramer was right. money shouldn't be in the market if you need it in the next 5 years. stocks are for long term investments, not short term quick cash.

  • Report this Comment On November 16, 2009, at 11:48 PM, kstoltz wrote:

    I think for a guy who is on TV 5 days a week, with the kind of show that he has (high energy, rapid fire), if you actually listen to him, he's generally got a decent track record with sound reasoning behind his picks. No one is right 100% of the time. If you're right 60% of the time, you're doing pretty well. Cramer is due for plenty of criticism, but if you actually listen to what he says, it's mostly the same advice you hear here

  • Report this Comment On November 17, 2009, at 2:09 AM, will42 wrote:

    Nick: I have listened to Cramer for several years also listened to the Motly Fool on Radio when they started. I have lerarned a lot about the stock market from both. I have made mistakes through my own neglence and lack of work. I can not attribute these mistakes to Jim. I must say that Cramer has taught me more than the new People that are proposed experts on the Motly Fool. It seems that MF has gotten into the sell as much of the letters advisory papers etc and now a mutual fund. I have to believe the boys have sold out.

  • Report this Comment On November 17, 2009, at 2:45 AM, mariocavolo wrote:

    You're kidding right? You can't be serious. You are COMPLAINING that Kramer told people to get out of the stock market exactly when they should have? I don't like the guy so much either, but this article's sense makes him seem a saint in comparison...Cheers, Mario, www.mariocavolo.com

  • Report this Comment On November 17, 2009, at 6:21 AM, oldnewsman wrote:

    Your article is the reason why I no longer subscribe to The Motley Fool and belong to The Street instead. 'Nuff said

  • Report this Comment On November 17, 2009, at 7:34 AM, bensisko wrote:

    Nick...bro..you have NO IDEA WHAT YOU ARE TALKING ABOUT. I got out of the market in October 2008 as per Jim's advice. If I hadn't, I would have lost about 70% of my portfolio. I however managed to buy it all back around April 2009 and saw my portfolio double because of Cramer!!

    Thanks JIM!!!

  • Report this Comment On November 17, 2009, at 8:45 AM, devandev wrote:

    This article is the main reason I won't be renewing my subscription o MF this month. Endless bashing of a rival and ending every article with an ad.

  • Report this Comment On November 17, 2009, at 9:34 AM, jakkal wrote:

    Nick,

    What you don't mention is that for those that didn't sell in October, the 50% rally wasn't money in the bank, but rather, partial recovery.

    I wish I had sold in October and then bought in at those depressed prices rather than seeing them and knowing my value just got gutted cause I'm still holding.

    You can't possibly argue that instead of selling and preserving your capital, it was better to not have sold, lost a boatload of money and then rode the rally to a fraction of the money you used to have.

    I didn't sell in October and it took me damn near 7 or 8 months to get back to break-even (though not back to the gains I had made in the market). This is just simply a very stupid article.

    p.s. I'm not a fan of Jim Cramer but I wish I had followed this bit of advice.

  • Report this Comment On November 17, 2009, at 9:34 AM, jakkal wrote:

    Nick,

    What you don't mention is that for those that didn't sell in October, the 50% rally wasn't money in the bank, but rather, partial recovery.

    I wish I had sold in October and then bought in at those depressed prices rather than seeing them and knowing my value just got gutted cause I'm still holding.

    You can't possibly argue that instead of selling and preserving your capital, it was better to not have sold, lost a boatload of money and then rode the rally to a fraction of the money you used to have.

    I didn't sell in October and it took me damn near 7 or 8 months to get back to break-even (though not back to the gains I had made in the market). This is just simply a very stupid article.

    p.s. I'm not a fan of Jim Cramer but I wish I had followed this bit of advice.

  • Report this Comment On November 17, 2009, at 9:50 AM, kstoltz wrote:

    The responses are interesting....pretty one-sided, and surprisingly so.

  • Report this Comment On November 17, 2009, at 10:20 AM, bmjones76 wrote:

    I think Motley Fool needs a brand new Department of Redundancy Department to put articles that I've read about 4x over the past year in its proper place. Perhaps fool.com can consult the American Dodgeball Association of America for advice.

  • Report this Comment On November 17, 2009, at 10:22 AM, bmjones76 wrote:

    Does the Fool's Department of Redundancy Department know about articles that are re-posted multiple times per year?

  • Report this Comment On November 17, 2009, at 10:23 AM, pondee619 wrote:

    Write something new Nick Kapur, please, how many times can you re-post this trash? Just delete the responses and it is a fresh article again?

    Whatever money you may need for the next five years, please take it out of the stock market right now, this week. Should not have been in the market in the first place. Or are you saying that all our money should be in the market regardless of the time frame within which we may need it?

    Nick, please stop posting this. IT HAS GOTTEN VERY TIRED

  • Report this Comment On November 17, 2009, at 10:30 AM, pondee619 wrote:

    Write something new Nick Kapur, please, how many times can you re-post this trash? Just delete the responses and it is a fresh article again? Same story each and every month for a year. I guess the fool don't pay for originality.

    Regarding the permise; should money needed within five years be in the market. Nick, I would like an answer to this question. Should money needed within five years be in the stock market?

    Should I repeat the question 12 more times, as your story reappears?

    Quit the story Nick, we have read it. It is now getting very tired.

  • Report this Comment On November 17, 2009, at 10:33 AM, pondee619 wrote:

    Regarding the permise; Should money needed within five years be in the market?

    Nick, I would like an answer to this question. Should money needed within five years be in the stock market?

    Should I repeat the question 12 more times, as often as your story re-appears?

    Should money needed within five years be in the stock market?

  • Report this Comment On November 17, 2009, at 10:33 AM, pondee619 wrote:

    Regarding the permise; Should money needed within five years be in the market?

    Nick, I would like an answer to this question. Should money needed within five years be in the stock market?

    Should I repeat the question 12 more times, as often as your story re-appears?

    Should money needed within five years be in the stock market?

  • Report this Comment On November 17, 2009, at 10:43 AM, GirlScoutDad wrote:

    Cramer's advice to take out of the market any money you'll need for the next five years was absolutely the best free advice ever given to the average individual investor in the entire history of the stock market. For those who did not get out, the ride has been a panic-inducing emotional roller coaster. How can the Fool criticize him for being both so right and so cautious? I have enjoyed both Cramer and the Fool over the years, but I would say the Fool got it absolutely wrong on this one!!!

  • Report this Comment On November 17, 2009, at 11:37 AM, marjamlou wrote:

    I wonder if there are going to be huge capital gains due to this bull market if you just held and not sold...let me know if you agree...

  • Report this Comment On November 17, 2009, at 2:14 PM, rlukesic wrote:

    THE ONLY ADVISE YOUR GIVING IS HIND SIGHT

    WHAT WAS YOUR ADVICE BACK IN OCT 2008 ?

  • Report this Comment On November 17, 2009, at 6:27 PM, sentinelbrit wrote:

    The bottom line is that Cramer has been right.

  • Report this Comment On November 17, 2009, at 7:13 PM, ultrabrowser wrote:

    The advice is ridiculous on its face because no one except the super wealthy (not Cramers audience) can say this is money I wont need for 5 years, what with unexpected health, family, economic issues.Cramer is telling his audience to always stay away from the market--what a contradiction!!

  • Report this Comment On November 17, 2009, at 8:37 PM, ultrabrowser wrote:

    The Cramer "call" was based on the proposition that the market was headed down over the next five years. That call has already been proven wrong just one year later. How about Cramer's call 2 weeks ago after a few down days that the market had seen its highs for the year. One week later he was wrong again, an arrogant fool.

  • Report this Comment On November 17, 2009, at 8:39 PM, ultrabrowser wrote:

    His prediction was the market would be down over the next five years, already wrong. How about his call 2 weeks ago after a couple of down days that the market had seen its highs for the year--wrong again a week later. What an arrogant fool.

  • Report this Comment On November 18, 2009, at 1:43 AM, WheresTheBox wrote:

    I've got to say; reading something so outrageous really makes me wonder why I would trust anything that the fool posts on its site. Cramer gave us several very direct bold warnings to reduce our stock expose in the fall of 2008 and has been outspokenly bullish for the last six months. During this whole time every other talking head discussed "U"s, "L"s and "W"s, and all the while the market continues to trace a perfect "V". Luckily for me I agreed with Cramer in April and am finally above even. If I had heeded his advise more seriously, I'd be at least 50% ahead of where I was last fall. I'd hate to read what you print about Cramer's mistakes if you are going to rag about his most brilliant calls.

  • Report this Comment On November 18, 2009, at 11:16 AM, MADACASTO wrote:

    TMF says - "don't listen to Cramer, he's dangerous. But please, listen to us, because we say everything, out of both sides of our mouths, and sell you crap along the way!!!!"

  • Report this Comment On November 18, 2009, at 11:42 AM, BawldGuy wrote:

    Max Whitmore the noted chartist, told anyone who'd listen to get out of the market in June of 2008. He also said DOW would fall to at least 8,000 in the same post.

    His advice was for everyone, not just those who needed their capital in the next 5 years.

  • Report this Comment On November 18, 2009, at 11:46 AM, switchtrader wrote:

    Interesting article....and I couldn't agree with you more about Jim C. However you made this statement, "Those people who were convinced to run for the hills thus missed out on one of the biggest market rallies ever -- a rally no one saw coming. "

    Well that is not quite true....and small company, switchtraderpro.com hit the market right on....and has been doing so for many years. He called the market to turn Bull in Feb.

    A 100K invested on Jan. 08 would now be worth over $160,000. Check it out.

    www.switchtraderpro.com and for a list of his completed trades check out http://www.switchtraderpro.com/trading-record.php

  • Report this Comment On November 18, 2009, at 1:27 PM, thisislabor wrote:

    I think the problem with Nick, is Nick believes the market moves randomly in the short term.

    and there in lies the problem.

  • Report this Comment On November 18, 2009, at 1:36 PM, thisislabor wrote:

    I sure dislike the tv talking head though, guy makes markets move. I'm sorta surprised people actually listen to him.

  • Report this Comment On November 18, 2009, at 1:45 PM, thisislabor wrote:

    pondee619, the answer is no.

    no, you should not have money you need in the next 5 years in the stock market.

    That is what we would call an incalculable risk. Any risk at all is too much, because if you lost it you would not be able to replace the money.

  • Report this Comment On November 18, 2009, at 2:03 PM, thisislabor wrote:

    You know, ultrabrowser hit on something there:

    "The advice is ridiculous on its face because no one except the super wealthy (not Cramers audience) can say this is money I wont need for 5 years, what with unexpected health, family, economic issues.Cramer is telling his audience to always stay away from the market--what a contradiction!!"

    I have a poster on my wall from despair.com, it reads:

    Irresponsibility: no single raindrop believes it is to blame for the flood.

    I wonder if there is any real connection there? do you think so Nick?

  • Report this Comment On November 18, 2009, at 3:09 PM, poach wrote:

    I agree, this article has nothing new and is full of generalities. Subjective too and a little disconcerting, when the author had published a similar tirade not too long back. Cramer has always been timing the market - he doesn't claim to be otherwise. Using John Stewart's idiotic interview to buttress your argument is also quite silly.

    Doesn't behoove the Fool to keep publishing regurgitated rants, with Cramer's name in the lead, knowing people will read it out of curiosity.

    Poach

  • Report this Comment On November 18, 2009, at 3:43 PM, pondee619 wrote:

    thisislabor; Then is Cramer wrong in telling poeple to get this money out? According to the article's writer he is a menace in giving this advice.

  • Report this Comment On November 18, 2009, at 6:01 PM, thisislabor wrote:

    pondee619, your starting to figure it out.

    yes, I agree with Nick Kapur.

    Had Cramer instead said the market will be crashing in the fall of 08, and had said this around January or February - daily and on a consistent basis for a month or two.... I might heed more advice from the guy. But, since he makes 50 calls a day statistically he is likely to be right on about 25 of them. - I think most Cramer lovers are just seeing things to fit there paradigm.... the 25 calls that were correct and not seeing the 25 that were wrong.

    (to give credit where credit is do: he has an accuracy closer to 52% or so as I recall from one study I read stated - but as far as I'm concerned I think that is more due to his ability to swing the market by 2% just from him saying it will go up or go down).

    And, I think Nick Kapur is seeing things to fit his paradigm. I think Nick is sorta right movement in the market is random... somewhat but I do think it is highly emotionally driven in the short term by the nature of the people that are doing short term investing in the market. I think these people tend look for things to feed on or off of to say that the market is going to do one thing or another. ... my point is more like this... we didn't lose 50% of those assets over night, factories still existed and contracts still existed inside the companies. How in the hell did the market disappear over night? - I think people aren't doing there homework and going through the form 10K's and figuring out what they believe the fair price of the company to be and then purchasing based on the price.

    as a side note,

    pondee619, wth are you doing risking money you need! - commonsense here applies, doesnt it? money you need is not to be risked. money you don't need - invest away with.

  • Report this Comment On November 18, 2009, at 6:10 PM, mhonarvar wrote:

    Cramer isn't any worse then the self advertising of this site...atleast he actually names the stocks hes talking about ...I cant count how many "articles" ive read here only to find that when I get to the bottom of the page...its only asking me to hand over my Visa info to find out what stock theve been talking about.

  • Report this Comment On November 18, 2009, at 6:12 PM, thisislabor wrote:

    as far as my despair.com poster and irresponsibility goes, I was referring more to the listeners of his show then Cramer himself.

    there was no reason for people to just arbitrarily listen to the guy and hope he is right. as opposed to their homework read the form 10K's on the stocks they own, reevaluate their position on the stock and see if they still believe it was fairly priced relative to the book value.

    My comment was not about Nick Kapur. I hope that clarifys, poach.

  • Report this Comment On November 18, 2009, at 6:16 PM, thisislabor wrote:

    mhonarvar, yes the motley fool should just randomly give out free stock tips to the mass general public so that they too can do a pump-and-dump scheme on individual stocks and the market as a whole. ... uh, no?

    I do however appreciate the fact that they are willing to give out free general advice on stuff to look for in general - It is not a perfect substitute for me taking a true accounting course and learning on my own... but it is all I can afford at the moment.

  • Report this Comment On November 18, 2009, at 6:22 PM, thisislabor wrote:

    You ever seen reality tv shows? they're not based on reality, nothing that goes on in them ever happens in reality... at least not the one I live in. I have never had 33 woman trying to marry me in my life. Nope, not once.

    that is what cramer is to the finance sector. he is a reality tv show to investors.

  • Report this Comment On November 18, 2009, at 6:46 PM, thisislabor wrote:

    unexpected health, family and economic issues aren't going to cost 200,000 dollars - sorry truth. just not buying it.

    what the hell do you need 100 or 200 thousand for in the next 5 years? a college education is at most 20-30k a year... so what your twins are starting school soon?

    ... anyways to address your question, my vote would be:

    CD's, non-volatile dividend paying stocks, and cash.

    -

    Sorry, truth, a need is a need. a want is a want. you have to decide if your wants are needs or wants. and yes it might mean you have to work a little more and a little harder to save a few more dollars.

    I ain't putting the little cash I have right now in the stock market because I am still paying for my schooling for the next 3 years. schooling is a need, better returns are a want. at least the way I was raised.

  • Report this Comment On November 18, 2009, at 10:39 PM, NMGRL wrote:

    Cramer also has advised on buying some defensive shares.

    For all his craziness, if you really listen to him, he's not as nuts as he seems.

    I am pretty intrigued by his approach to limiting the number of stocks so you can research each at least 1 hour a WEEK, and diversifying. The other day I read a post here in answer to a question about how many stocks to own following Stock Advisor. The answer from TMF writer? He had 80 stocks and "forgot" about some of them... This sounds like a bad approach for most people.

    As a former buy and hold investor, I understand to be much more watchful now AND the importance of really knowing the stocks in one's porfolio. This is not bad advice from Cramer!

  • Report this Comment On November 18, 2009, at 11:10 PM, seekingSL wrote:

    Yeah - I don't know if MF/Nick should be quoting UNH as a "highlight" as it hasn't moved much in last 6 years. Yeah it was a multi-bagger at one point but that streak ended in late 2008. With all the uncertainity around healthcare legislation, I don't think UNH is going anywhere (or at least up) in a hurry. Cheers.

  • Report this Comment On November 18, 2009, at 11:17 PM, thisislabor wrote:

    yeah it did that to me too, thruth.

    - sorry, sometimes I get a little overly emotionally invested in the fool myself.

    some of the same mistakes they talk about on the fool in their open letters here are some (many) of the same mistakes I have made myself - also, I think I need to start reading posts for both sarcasm and for strait forwardness. I tend respond in both manners in a singular post myself. I need to start reading them in both a positive and negative light - and see if my view point changes (or their viewpoint changes).

    glad to see we agree, usually I do agree with your posts.

  • Report this Comment On November 18, 2009, at 11:55 PM, Tacomatight wrote:

    Cramer has made me over 20,000 dollars since March (VALE, BUCY)What have you done for any of us Nick? You want to bad-mouth Cramer? Give me 5 stocks that outperform him.

  • Report this Comment On November 19, 2009, at 8:03 AM, pondee619 wrote:

    thisislabor:

    OK Now you have me really confused. Nick says that Cramer is a menace for telling people not to invest money they need within five years.

    "Whatever money you may need for the next five years, please take it out of the stock market right now, this week. I do not believe that you should risk those assets in the stock market right now."

    " Over one year ago and thanks in no small part to the statement above, I concluded that Jim Cramer was a menace to investors."

    You agree with Nick, ("yes, I agree with Nick Kapur") who contends that Cramer is a menace for telling people not to invest money needed within five years.

    Then you say: "commonsense here applies, doesnt it? money you need is not to be risked. money you don't need - invest away with".

    So which is it? Are you a menace for telling people to not invest five year needed money or should "common sense" apply and keep those funds out of the market?

    Or, are you a menace for advocating that five year needed money should be kept out of the market?

  • Report this Comment On November 19, 2009, at 10:04 AM, mikecart1 wrote:

    LOL @ these idiots here trashing Cramer. In the end it is about results. Cramer has $200,000,000 that says he is better than probably all of you. That is all that matters. In football, basketball, any sport, do you trash a team because they lose to the worst team during the season? Or do you make fun of their stadium or uniforms? Or make fun of how boring they are when they play and how they just run, etc?

    Cramer is a winner. Anyone crying about how he can't time the market precisely is just an idiot. Last time I checked from October 2008 to March 2009, the market dropped the entire way. Yeah nice time to hold....and IGNORE Cramer... NOT!

    LOSERS!

  • Report this Comment On November 20, 2009, at 12:26 AM, wenger2k wrote:

    any investor that would blindly follow the advise of a sage is most likely to get steam rolled. I believe that goes for whether the sage is question is Cramer or Tom Gardner. If you contention is that people blindly follow Cramer, it's possibly true, but its agains the constant objection of Cramer who regularly beats home the importance of doing your own homework. Of all the things Cramer has talked about I've bought (or sold) very few but his insight into market mechanics and the mind set of hedge/fund managers has been invaluable. E.g. he has done more to explain why the market has continued to go up through October and November even though conditions look oversold more than anyone else I've heard here. I've never seen anyone from TMF attempt (and certainly has not succeeded) int bringing reason to the day-to-day or ebb-and-flow movements of the stock market. Its more than I can say for TMF.

    On a further note, wtf is up with all this bashing of folks by the writers here at TMF - last week I read some baseless and emotion laden piece of crap about how steve jobs wanted to eat unborn babies (no not literally) and now one about how your feelings are hurt because folks don't flock to your brilliance instead of Cramers. Is there any chance that you fine writers, er, analysts, can get out of the People magazine prose competition and actually go find some unique and valuable investments for your readers?

  • Report this Comment On November 20, 2009, at 1:57 AM, thisislabor wrote:

    pondee619,

    lets start here. cramer is contributing to the problem that caused the stock market to crash overnight from oct 6th to the oct 7th period (500 points over night).

    as far as I'm concerned blindly telling people to sell everything - and people listening and following that advise - is what caused the stock market to crash in the month of october.

    now, granted had you sold the MORNING OF oct 6th, you would have done great! as I recall cramer comes on at night, so you would already be 500 points in the hole by following his advise and selling the following morning on the 7th.

    lets start there....

    second he was basing that guestimate off of the previous week from monday to friday - where there had ALREADY been a 1000 point fall in the price of the stock market - as far as I'm concerned that's a little late to be saying sell now. he was just jumping on the band wagon.

    from the previous friday (october 3rd) to the following monday (october 6th) there was a 400 point fall. - too me it would be pretty easy to say that's a lot of volatility and it is moving down fast.

    yes, sell everything now. today. everything everyone!!! zomg!!! everyone sell!!! every one go!!!

    oh look, the market moved how amazing was that? - i think him and others like him telling everyone to sell now everything helped contribute to the market panic and are a part of the problem. he is instigating a panic. if you did that on an airplane they would call it a felony offense.

    now, read Nick's 3rd paragraph down under "Thank you, Jon Stewart!"

    also, I think it would have been stupid to sell are your positions in all your assets over night. if you took the time to purchase high quality assets the first time neither would you want to nor SHOULD you sell those assets, they would survive a down turn in the market just fine. a market panic on the otherhand is a completely different beast as in not driven by logic, rational thought, or common sense - it is not driven by anything at all, as a matter of fact, except for by a heard instinct. think of when one water buffalo starts to charge - the whole heard goes with it. or lemmings off a cliff. or penguins off an ice shelf - actually penguins have a logical reason for what they do.... but that is another subject.

  • Report this Comment On November 20, 2009, at 2:04 AM, thisislabor wrote:

    now this is where common sense should apply. if you have a need for the money in the next X number of years at Y number of dollars, then for the X number of years you should not touch Y number of dollars.

    if you have dentist bill coming up, dont spend that 3k on the market! leave it in cash, or a cd, or a money market account or any other extremely low volatility asset. - unless of course it isn't really a need, and you can make up that money that you will need in the future by working for it in time to pay for your new set of braces should the asset value drop out from under it due to stupid market fluctuations that normally occur on a month to month (year to year?) basis.

  • Report this Comment On November 20, 2009, at 2:04 AM, thisislabor wrote:

    I hope that helps. thats just my view on things... and there goes motley fool doing the blank post thing.

  • Report this Comment On November 20, 2009, at 2:13 AM, thisislabor wrote:

    now the next question to ask (I know I'm pushing my limit here but here goes anyways....) is:

    Now, from the day of the Oct. the 6th of 2008, if you DID NOT sell any of the assets you had (because, remember, you don't need them so you don't sell them - right?) what would they be worth today using the Dow Jones Industrial Average as a guide line?

    What was your gain if you bought the DJIA from that date to today?

  • Report this Comment On November 20, 2009, at 5:46 AM, fooljh123457 wrote:

    chk is a mainstay???

    with all that debt they are just a holding company for some NG corp that will buy them outta bankruptcy LOL

    can I call you an idiot, or is that against the rules?

  • Report this Comment On November 20, 2009, at 7:02 AM, Chromantix wrote:

    I listen to the Mad Money podcast daily on my way to work and try not to take Cramer's advice more than once a year.

    That being said, I distinctly recall him calling a "bottom" earlier this year when the market was indeed at a bottom. I hadn't taken his advice a single time since I decided to learn about market investing, but I did this time.

    I'm very, very glad I did. That being said, I haven't taken any of his advice since. "hogs get slaughtered... don't be greedy..."

    Whatever - my dividends are healthy day or night, up or down.

  • Report this Comment On November 20, 2009, at 8:01 AM, pondee619 wrote:

    thisislabor:

    You say: "as far as I'm concerned blindly telling people to sell everything - and people listening and following that advise - is what caused the stock market to crash in the month of october" SELL EVERYTHING? Where in the following statement does Cramer tell anyone to sell EVERYTHING?

    "Whatever money you may need for the next five years, please take it out of the stock market right now, this week. I do not believe that you should risk those assets in the stock market right now."

    Whatever money you need in the next five years is not, or should not be, EVERYTHING.

    I now see the problem. Those against Cramer on this issue have misread/understood him. His comment was not to sell everything but just to get five year needed assets out of the market. Or course, those assets should not have been in there in the first place. But, if you had any in, they should be taken out.

    Cramer would be shocked to learn that he caused the crash on the above advise. A clear and impartial reading of Cramer's advise would be appreciated. he did not say "SELL EVERYTHING" He said take money out of the market that you will/may need in five years. Those assets do not belong in the market. What is the problem with this adivse?

  • Report this Comment On November 20, 2009, at 8:35 AM, steveballmer wrote:

    Hey, Kramer is good to Microsoft!

    http://fakesteveballmer.blogspot.com

  • Report this Comment On November 20, 2009, at 10:26 AM, wenger2k wrote:

    And if the Cramer hater's here worship at the feet of John Stewart then where is his brilliant advise. BTW, if you are a John Stewart fan and haven't seen the video, go see it on YouTube. Its one of the most despicable performances by a show host I've ever seen. I lost any and all respect for Stewart when he basically lured Cramer on to his show under the guise of kindof talking this thing through and then once Cramer came on he basically ripped him a new one, wouldn't even give Cramer a chance to respond, let alone defend himself. If you see Stewart as some sort of hero here, I truly feel sorry for you. I thought Stewart showed his true metal - that he is a complete A**hole - albeit a funny one.

  • Report this Comment On November 20, 2009, at 10:59 AM, PoorBloke wrote:

    I can't believe that anyone with an iota of common sense would defend someone like Cramer.

    I can't remember what it's called but there's a segment on CNBC where he does the "Lightening Round" (Maybe that's what it's called) where people phone in with questions about whatever stock has appeared on their radar.

    The acid test is that no matter which stock it is, then Cramer has an opinion about it, which he usually shouts at the caller in order to seem more convincing. He knows everything about every stock on earth? I think not.

    The man is a liability, and you can try and buy and sell on his advice if you are a daytrader who spends their life hanging on his every word.

    I'd like to see any of his admirers do this.

    See how much money you make, then come back here and post what trades you made and when.

    That would be educational, wouldn't it?

    Cheers, PB

  • Report this Comment On November 20, 2009, at 11:13 AM, SOBER38YEARS wrote:

    Nick:

    You got a problem. Watch Mad Money, Jim tells the folks to do their homework!

    I think you have a problem called jealousy.

    Get your act together and if you are that smart start you own show instead of second guessing someone else.

  • Report this Comment On November 20, 2009, at 11:23 AM, Cqqldude wrote:

    57 here, used to be a "buy and hold" investor. Started listening to his show and have read 3 of his books. Simply said, I'm ahead of the game I've been playing because of his advise and teachings. If you aren't, maybe you should look at yourself...........

  • Report this Comment On November 20, 2009, at 12:55 PM, jesse2159 wrote:

    You t5his Cramer is a problem? How about Suzi Ormond or Kudlow? Both are worthless.

  • Report this Comment On November 20, 2009, at 1:33 PM, shuee5 wrote:

    Cramer even when he is wrong, still makes people a lot more money than any other talking head. I bought some of the stock he lists in his new book and have made good money, because they were in his last book and I knew what to do. Whine about Cramer all you want, but he plays poker with real money, not match sticks like most comentators.

  • Report this Comment On November 20, 2009, at 1:51 PM, jack5651 wrote:

    Listen if I have to choose between Jon Stewart and Jim Cramer, I'll take Cramer any day. Nick you follow Jon and we will follow Cramer

  • Report this Comment On November 20, 2009, at 2:52 PM, jahnee wrote:

    I wondered when someone would take this nitwit to task. The closer to the top,he is screaming Buy,Buy. The closer to the bottom, he is yelling Sell,Sell. and what in the world is this Booyah nonsense?

  • Report this Comment On November 20, 2009, at 3:47 PM, ajr763 wrote:

    Cramer said to get back in on March 9

  • Report this Comment On November 20, 2009, at 4:00 PM, jasbo43 wrote:

    Maybe if the author has listened more carefully to

    what Jim Cramer said, he would realize that he was saying what the Fool and others often say - don't risk money in the market if you may need it in the short term.

  • Report this Comment On November 20, 2009, at 4:27 PM, thisislabor wrote:

    I guess it is hard for me to hear all that calm common sense through the fog horns and zooming in and out and the crashing ball sound effects on his talk show. must have miss read that statement. i apologize.

    but still you would have been down 500 points have you listened to him.

    his call on his timing was STILL wrong. had he made his calls more like in september then yes I would give the guy more credence.

  • Report this Comment On November 20, 2009, at 5:05 PM, thisislabor wrote:

    you know on further reflection maybe I really did miss specifically why Nick thinks the guy is a menace (and I am under the assumption that he does - and that is isn't one of the double negative articles where really it is positive written extreme sarcasm...).

    huh, I argued the same point and never saw it lacking in his. I guess I would have never figured he would have really advised someone that way... I just completely missed that. huh.

  • Report this Comment On November 20, 2009, at 5:07 PM, thisislabor wrote:

    cramer I mean, not nick.

  • Report this Comment On November 20, 2009, at 5:26 PM, nprfreak wrote:

    I too am not a huge Cramer fan, but I have found value in what he has to say under certain circumstances. He knows his stuff but too much of his "show" is off-the-cuff" and should only be used as a basis for research. In fact, that's my general policy for all stock market reporting: never make a move based on an article, commentary, etc without due diligence and never EVER immediately after it becomes public.

    I listened carefully to Cramer on that 10/6/08 Today Show appearance. (It's still available here: http://www.msnbc.msn.com/id/27045699/). I believe he was totally sincere and totally correct!!!

    He DID NOT SAY sell everything. He was talking to folks nearing retirement or with kids approaching college or with uncertainty in their employment or with plans to buy a house who would fund those things with assets in the stock market (stock, funds, etc.). He was advising getting any money needed for the next 5 years in a 100% safe vehicle. Not everything, but what one might reasonably need.

    He was counteracting both his own rah-rah stock market bullish history but also the "common knowledge" that you should buy the dips and that 3 years is a pretty safe bet for coming out at least even.

    I agree with what seems to be the consensus in the comments: this article is harsh on Cramer for an instance where he made a good call. There are many instances where Cramer deserves our scorn but this was not one of them.

  • Report this Comment On November 20, 2009, at 5:34 PM, thisislabor wrote:

    you know I wonder if I could do a study as part of my paper i have to write to graduate ASU around Jim Cramer and either shorting or buying the market based off of his calls. if he did say to start buying on march the 9th that would explain the 450point jump the next day... (but do I really have that much free time to do that?).

    it's sorta would be like the masses shorting the masses. lol, i love it.

  • Report this Comment On November 20, 2009, at 5:36 PM, thisislabor wrote:

    keemar - it is not the call, but the timing of it that is the issue.

  • Report this Comment On November 20, 2009, at 5:37 PM, thisislabor wrote:

    that and the fact that he feels as though there is a time to risk money you need.

  • Report this Comment On November 20, 2009, at 5:52 PM, vzince wrote:

    wish i d gotten out when he said that. i m in individual stocks and i d had saved prob. 40% of my losses. however in march i started to try and get back some of my losses and that is verry tough to do when you have little powder to work with. very dumb mistake for someone thats been doing this as long as i have. now i m paying with endless sleepless nights.

  • Report this Comment On November 20, 2009, at 6:00 PM, mikecart1 wrote:

    I love reading threads like this because it reminds me of how bitter and sour people are of their own achievements. Jealousy is what fuels me to stay ahead of the pack even further. I love blowouts in sports, and 1 round KO's in boxing. I love when a single student breaks the curve and causes more to fail in class. People should be rewarded for being better than others. This complaining nonsense is tearing this country apart.

  • Report this Comment On November 20, 2009, at 6:14 PM, UrMajesty wrote:

    Nick

    I must admit I'm REALLY disappointed in you and this article.

    ET TU BRUTE!?

    I'm not going to bash you as my fellow posters have but I am surprised at the level of contempt. Bordering on JEALOUSY maybe?

    Anyway first off let us say that anybody stupid enough to listen to only one person's "EXPERT" advice deserves to loose their money or simply should not be investing and if you have ever watched Cramer's show he constantly says to not take his advice only but to also do your homework!

    Secondly I saw the "interview" with Jon Stewart and it was nothing short of a network television LYNCHING! It was as though Stewart found the single reason the economy collapsed and it was the backroom dealings off Jim Cramer!

    Cramer obviously is an extrovertive personality and it makes for good TV but he's not a snake oil salesman! He does what every other analyst, economist, and financial commentator of CNBC has been doing longer than we have been alive and they're pretty much as accurate as flipping a coin.

    And if you do or don't remember he was the ONLY person that warned of the market/bank problems and inevitable collapse, LOUDLY, months before it actually happend. My guess is he was the only person with big enough one's to admit there was a problem not that he was the only one to notice. OR MAYBE HE WAS?

    I think the experts, like yourself, need to spend their time making a real effort to punish the true culprets, reinstate all the rules stripped away by the Bush administration letting their rich friends wreak havoc on the little guy and make investing once again accessible to everyone, and also to completely eliminate B S things like CREDIT DEFAULT SWAPS!!!

    Lastly let me ask you this:

    Do you feel this strongly with A I G and Goldman Sachs as you do Jim Cramer?

  • Report this Comment On November 21, 2009, at 12:33 AM, thisislabor wrote:

    you know what the problem is with the investing world today? people need to buy and hold forever! that's the problem right there. buy and hold forever, like seriously. buy and forget that you own the stock. seriously. that would stop alot of this stock market crash crap.

    when you die, let you kids sell the stocks (or if they are smart they will buy and hold forever too!) and there you go. no more market crashes........

  • Report this Comment On November 21, 2009, at 4:14 AM, tomd728 wrote:

    Multiple Choice :

    1.Jim Cramer gives good advice.

    2.Jim Cramer gives bad advice.

    3.Jon Stewart is a self-serving jerk.

    Answer: All of the above.

  • Report this Comment On November 21, 2009, at 12:21 PM, Threedollarbill wrote:

    A lot of negative opinions, and a lot of what ifs. Cramer's advice of getting out of the market if you need your money for the next five years is correct, BUT what was happening at that specific time in the market makes it seem alarmist. The market was bottoming out fast, it seemed a bit scary--why else were people selling off parts or all of their portfolio? So when he says, sell everything, I'm sure some took his advice on that (and when does one get back in--the article is correct--he did not).

    So the average Joe who does not do homework and just listens to Cramer, probably did just that--sell everything. Would he have been better off not selling? For the average investor, I think so. It's hard to say, but I still think buy and hold has some validity, as one cannot "time" the market, which is what this article is getting at. And again, I'm not speaking about a seasoned investor, I'm speaking about the common guy, who doesn't do his homework, seeks water cooler advice, doesn't work on Wall St., etc. (Which imo is more the majority of investors, than the minority.)

    Plus if you had sold when Cramer said to sell, you might have kept 60-70% of your portfolio, but had you not have sold at all, you wouldn't have lost 40-30% of it either--you wouldn't have lost a dime! You don't make a loss or gain until you sell. It might take time to recoup your holding back to where you bought them at, but if they are sound companies, it shouldn't mattered.

    I watch Cramer, I think he's less entertaining, more irritating at time, but I enjoy some of his advice, and I think he's pretty smart too, I just think his delivery is annoying. Having said that, if you've watched his shows any, you have to see where he gives advice, and then changes his views (not that companies don't change, but he does that waaaay too often). ie. He doesn't like Netflix, he likes Redbox--the boxes that rent movies with a credit card. Less that three months later, he's all about Netflix. Companies don't flipflop that quickly, and nobody is there to call his hand on that type thing. I guess the word to the wise though still remains, do your homework.

    As far as advice, MF, Peter Lynch, and a few others, have been more sound in their thinking, made me more money than anything I've heard from Mad Money--though I'll still tune in.

  • Report this Comment On November 21, 2009, at 10:12 PM, strongdollar wrote:

    Cramer was pounding the table to buy Bear Stearns just before it collapsed. Then he tried to make it sound like he was just telling people insured deposits were safe at Bear. His October panic call to sell everything was reckless. Nick Kapur has it right Fools.

  • Report this Comment On November 22, 2009, at 1:08 AM, breethe wrote:

    nothing wrong with safeguarding cash that is needed within the next 5 years.

    for everything else "homework".

  • Report this Comment On November 22, 2009, at 7:18 AM, Tasmanicon wrote:

    For me:

    Cramer 70% up this year

    Motley Fool Zero

    Let him with no sin cast the first stone.

    Nuff said

  • Report this Comment On November 22, 2009, at 5:33 PM, thisislabor wrote:

    so I watched his msnbc broadcast and I am realizing he does the same crap I do in my day to day life too - a calm panic is still a panic. yep. I mean he got close to rational thought and yep, didn't quite make it.

    he was being fear driven instead of greed driven.... well that's what caring does for you. lol. there's the problem I do it all the time, too. I think he was being sincere actually for once.

    If he really wanted to say something on TV he could have said that his clients should start getting cash together to start making discounted purhcases of stocks out of the market in the next 3-4 months for the next 3 - 4 months.

    meh, I may start watching him a little for some explanations though... just for fun's sake. I'm not sure I buy into his explanations but hey.

  • Report this Comment On November 22, 2009, at 6:20 PM, DrBob66 wrote:

    What a horrible article. I remember watching that clip shortly in mid-Oct and wishing I had followed his advice. Fortunately, I only had about 40% of my portfolio in the market at the time, so my buys in Feb and March have brought me back to even (and then even a little higher). Still, while I'm no fan of Cramer, he was clearly right at the time. After all, did you forget that, at that time, we were quite possibly on the verge of a collapse of our financial system.

    Also, on March 9, 2009, he came on the segment called "Stop Trading" on CNBC and basically stated that the "absolute worst case scenario" for the Dow would be at 5400. That was about the time that I started putting the remainder of my cash to work. It was a good call. I wonder how the folks at Motley Fool have done in their calls? Still holding the CHK shares that you bought in the 40's?

    I can't believe people would actually PAY for the investing advice on this site. Anyone that does would HAVE to be a FOOL! Useless article, useless site.

  • Report this Comment On November 22, 2009, at 6:27 PM, mikecart1 wrote:

    I can't believe this article is still going on. I should email Jim this so he can laugh at the staff here.

    Jim Cramer = 1996 Chicago Bulls

    Motley Fool = 2009 Oakland Raiders

    HAHAHAHHA!

  • Report this Comment On November 22, 2009, at 10:48 PM, JWValue wrote:

    If you heeded Cramer's advice you avoided a huge drop. Contrary to your assertions, Cramer did advise buying back in at various points and has been rather bullish for quite some time. The Market is only now near where he advised getting out. I'm afraid the author of this article is far more of a menace to the average investor with his blind advice of never sell stocks. What blindness.

  • Report this Comment On November 23, 2009, at 4:14 PM, mattius10 wrote:

    I can't believe people are actually criticizing Jon Stewart in their posts...

    Shame on Cramer for taking the bait and then going on a show to "discuss" investing with a quick witted COMEDIAN!

    And shame on the FOOL, some posters including thisislabor make some good points, but the article is weak and outdated.

  • Report this Comment On November 23, 2009, at 7:55 PM, VegasMartin wrote:

    On today's Mad Money, Jim Cramer was boasting about how he called the bottom to housing and housing-related stocks. He pointed out about half dozen stocks that he said to buy at the end of June, beginning of July right before they took off. This man is right more often than he's wrong.

    http://www.ShootTheBears.com

  • Report this Comment On November 23, 2009, at 8:07 PM, VegasMartin wrote:

    On today's Mad Money, Cramer devoted time to point out more than half dozen housing-related picks that he told you to buy at the end of June/beginning of July based on his call that housing has bottomed. The man is right more often than he is wrong.

    http://www.ShootTheBears.com

  • Report this Comment On November 24, 2009, at 6:15 PM, ultrabrowser wrote:

    This "do your home work" is a bunch of crap. He's telling people with a high school education to read 10Ks and balance sheets for a couple of hours, and then think you can outsmart the Harvard MBAs on Wall Street who spend 24/7 following this stuff, absoluty absurd!!

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