BARRONS VS CRAMER

On the recent edition of Barron’s which is published by Dow Jones which is now owned by Mr. Rupert Murdoch who happens to be creating a rival station to the beloved CNBC that we all love and watch just wrote a report trashing him because his returns are lagging the market. By their measurements, over the least, Cramer’s stocks rose 12 percent, compared with a 22 percent rise in the Dow Jones industrial average and a 16 percent rise in the Standard & Poor’s 500 index. This is obviously a staggering percentage to be trailing the market.

If we look into the report a little more there are some points to be refuted. One while Cramer makes a recommendation, he does not tell his readers to just jump into the stock which usually jumps after his recommendation. Usually he recommends buying them in a week or so and using limits. If you were to buy every stock after the recommendations, your returns would trail the market because you’re buying it at a definite high. Also his show is not about picking stocks although it may seem like it, it’s meant to be educational and supportive of his books which provide in more details of how to become a better investor. In a light of their criticism, Barron’s says “There is no doubt that Cramer is trying diligently to make you money. His advice is generally smart, his knowledge of individual stocks amazingly detailed,” and that is the point about Cramer, he sincerely wants to make his audience money and when you read his autobiography, “Confessions of A Street Addict”, you’ll see how it is.

But throughout his career, Cramer has been criticized and ostracized yet he lives on as a Robin Hood in a way; attempting to make the unfavorable world of investing a little more favorable to the average Joe or Jane. He may be the spark to many people who would otherwise not have a light.