On Wednesday, James Altucher, founder of Stockpickr, and an insider at TheStreet.com wrote a piece for the website defending Jim Cramer against this week's damaging Barron's article. He sets out to answer two questions:
1. Do Cramer's picks make money?
2. Does Cramer outperform the market?
He even goes so far to test Barron's picks during this time period.
He lays out a couple of rules. First, he recommends that you wait a week before buying Cramer's picks. In his book, Jim Cramer's Mad Money: Watch TV, Get Rich Cramer says to wait 5-10 days in order to avoid buying at an inflated price, something he calls the Cramer Effect. Altucher conducted this study by buying the stocks after 5 days. When it comes to selling, he tests the results after one month and then two months.
You can probably guess what the results were. Still its worth reading the piece. Altucher is kind enough to provide details about his methodology and the specific picks.
1. Do Cramer's picks make money?
2. Does Cramer outperform the market?
He even goes so far to test Barron's picks during this time period.
He lays out a couple of rules. First, he recommends that you wait a week before buying Cramer's picks. In his book, Jim Cramer's Mad Money: Watch TV, Get Rich Cramer says to wait 5-10 days in order to avoid buying at an inflated price, something he calls the Cramer Effect. Altucher conducted this study by buying the stocks after 5 days. When it comes to selling, he tests the results after one month and then two months.
You can probably guess what the results were. Still its worth reading the piece. Altucher is kind enough to provide details about his methodology and the specific picks.
1 comment:
Good words.
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