So-Called “Market Guru” Flunks When Finance Professor Tracks His Buy-Now Picks
Industry insiders like Jim Cramer push buy lists that seem like easy shortcuts. Are these buy lists safe without using a proven buy/sell system? More important, are they profitable? I answered these questions by tracking the performance of the 49 stocks Cramer recommended in his April 6, 2015 article on TheStreet.com. After reading Cramer’s recommendations, I invested $1,000 (via a paper-trade account) in each security Cramer recommended. I tracked the results for six months through last week.
The results are in and Cramer gets a failing grade. Only 14 of 49 securities closed higher than they were when I invested in April. That’s a 28.57% success-rate.
The moral of this story: If you blindly follow the so-called “market gurus” and their buy-now lists, you can put your financial future at risk.
A better approach: Discover how to evaluate securities so you can judge investment recommendations and decide for yourself how to secure your financial future.
Click here to read the October 2015 MarketWatch.com article about the challenge (Includes detailed results of how Cramer’s 49 picks performed over six months)
Read the original April 2015 MarketWatch.com article about the challenge.
Watch video in which The Wall Street Journal’s Lee Hawkins interviews me regarding the Cramer challenge.
Listen to this interview on WJPF radio in which I describe the challenge.
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