Whatever you may think about Cramer is secondary. Baruch’s main argument is that being a consistently successful non-professional investor requires enormous effort and is quite challenging. And the odds of finding good advice are far less then guessing the outcome of a coin toss. As an analogy, you need to learn to swim really well before jumping in with the sharks, and then, the even the best swimming skills only go so far. – Ilene
Baruch found himself commenting on Wall Street Cheat Sheet like ten days ago, on a post by Damien Hoffman, who seems to really dislike Jim Cramer. The post was about some investigation of TheStreet.com by the SEC, which Damien thought highly amusing, perhaps because he also runs a competing subscription-based financial edutainment site. Now, Baruch doesn’t pay attention to Jim Cramer on TV, but in fact quite likes him in print. He reads his posts on theStreet.com, and respects his track record as a hedge fund manager and pioneer econo-blogger. So Baruch felt a brief moment of annoyance about seeing someone he liked being unecessarily trashed, but soon his heart was filled with forgiveness and understanding again. We must not be too harsh; snark is Damien’s job, what he gets paid for. He is a financial blogger-journalist, and being cheeky about mainstream media figures is part of that David and Goliath thing blogging used to be all about.
Anyway, this post is only a bit about Jim Cramer and Damien Hoffman. The exchange got Baruch thinking about the differences between journalists/bloggers (or whatever you want to call them) and investors, and what it means to communicate about investments with the public. Baruch finds this terribly interesting, because of course as an amateur econo-blogger and a professional investor, he has a foot in both camps.
Some of Baruch’s best friends are, or have been, financial journalists and commentators, on blogs and print. Baruch in his time also attempted a bit of journalism, before he found his true calling (which isn’t blogging, by the way). Being a financial journalist is a good, interesting job, and very important to the proper functioning of a marketplace. Journalists can do things, find things out, and explain things the public and investors need to know in ways investment professionals can’t, at least without risking jail.
On August 26, 2009, Kass authoritatively proclaimed, “Markets top during times of enthusiasm. I believe that the markets are now overshooting to the upside and that the U.S. stock market has likely peaked for the year.”
Unless this time the greatest "contrarian long-term secular indicator of all time" no longer applies, this bear market is not finished. Although if you’re short, you’re ability to trade it may be. – Ilene
The end of investment fads tend to coincide with sharp changes in investor sentiment and long-term secular moves. No one has represented the excessively bullish & leveraged market of the 80’s, 90’s and 00’s more than Jim Cramer. He worked at the most highly leveraged hedge fund on Wall Street – Goldman Sachs. He took a dotcom firm public and promptly lost 95%+ for his shareholders at the peak of the market in 1999. He ran a super beta tech hedge fund in the leverage driven 80’s & 90’s (which I guarantee you underperformed the Nasdaq 100 on a risk adjusted basis), and he now runs the bullish of all TV bullish shows – “Mad Money”. The show basically begs small investors to be reckless with their hard earned cash. It borders on financial negligence in my opinion, but that’s for another discussion. No one has been a better icon of the excess of the 80’s and 90’s than Cramer himself.
Cramer is a powerful man. The mere mention of a stock can send shares soaring. (If investors are truly upset about the stock manipulation that Goldman Sachs and high frequency traders are accused of they should be extremely alarmed about Cramer’s show – no single person has manipulated more stock prices in the history of the stock market). When this phenomenon began several years ago I was dumbfounded. I asked myself: “who would buy these stocks in the after hours market at such a steep premium?” Late last year the trend had waned. The stocks Cramer recommended didn’t soar. Cramer’s power had declined. After all, he had called the bottom to the bear market on 3 separate occasions (all wrong), had recommended Bear Stearns just weeks before they went under, recommended Wachovia just days before they went under, top ticked the banks in a bet with Eric Bolling in what has to go down as one of the worst market calls of all time and even proclaimed in late September 2008 that “the bounce means the crash can’t happen”. His track record was…
The stock of Facebook has been in a rising wedge pattern for most of its lifetime – and the pattern is nearing a resolution.
Today’s Chart Of The Day takes a rare detour into single stock territory. As we do not trade individual equities for our clients, it is typically not a focus of ours. But with Facebook (FB) in the news today (along with a dearth of exciting charts) we take a look at a chart pattern relevant to FB throughout most of its history – and in particular, right now.
A “rising wedge” pattern involves a series of higher highs and higher lows on a price chart – with the lows demonstrating a s...
Never mind that he’s talking about many who his university educated, including me. Any of you who question campus preoccupation with safe spaces, trigger warnings and microaggressions are idiots and lunatics. That’s what Northwestern University President Morton Schapiro told new students this past week in ...
By PeakProsperity. Originally published at ValueWalk.
Largely out of the headlines, the ongoing protest on Standing Rock is shining a bright light on how the big-moneyed interests with political clout steamroll the disadvantaged in order to get what they need.
But in a rare David-vs-Goliath standoff, the Sioux tribespeople of Standing Rock Reservation are learning that they are not powerless. Their refusal to roll over and allow an oil pipleline to be built on their lands is growing into one of the largest resistance movements in recent years, drawing supporters from all over the country, and forcing the discussion of “Where do we draw t...
Chancellor Angela Merkel has ruled out any state assistance for Deutsche Bank AG in the year heading into the national election in September 2017, Focus magazine reported, citing unidentified government officials.
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"When you let the free market take over, the little people get screwed and bankers get rich. Chile tried privatizing retirement plans and surprise, surprise, fund manager ate the profits… Pretty sure the results would be the same here..." ~ Jean-Luc
I was so pleased yesterday by the announcement that I have joined the Research team at GoldCore as it meant that I could finally start talking about it and was back in a role that lets me indulge in my passion by researching and geeking out on all things gold, silver and money.
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Epizyme was founded in 2007, and trying to create drugs to treat patient's cancer by focusing on genetically-linked differences between normal and cancer cells. Cancer areas of focus include leukemia, Non-Hodgkin's lymphoma and breast cancer. One of the Epizme cofounders, H. Robert Horvitz, won the Nobel Prize in Medicine in 2002 for "discoveries concerning genetic regulation of organ development and programmed cell death."
Before discussing the drug targets of Epizyme, understanding epigenetics is crucial to comprehend the company's goals.
Genetic components are the DNA sequences that are 'inherited.' Some of these genes are stronger than others in their expression (e.g., eye color). Yet, some genes turn on or off due to external factors (environmental), and it is und...
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