Thursday, November 30, 2006

Mad Money Foolery - Mad Money

I've said it before and I'll say it again, CNBC's Jim Cramer is an idiot. Yes, I know I'm not being tactful, in fact I may even come off to be a tad jealous (don't worry, I'm not), but the fact of the matter is Jim Cramer is an idiot and we now have evidence to prove it (at least that he is an idiot stockpicker).

The linked article by Larry Swedroe details a study done by three Ph.D students from Northwestern's Kellog School of Management. The basic result is that Cramers antics and stockpicks, while entertaining to some, are losers. You don't make money following Cramer's advice. You make CNBC, Cramer, and Wall Street rich, but you won't make yourself anything. Investing is not entertainment, its serious and needs to be taken seriously.

Scott Dauenhauer, CFP, MSFP