Shorting Cramer’s Picks
Jim Cramer, the popular media personality and host of CNBC’s “Mad Money,” has gained both supporters and critics throughout his career. While he has made numerous predictions on the stock market and offered recommendations for investors, recent years have shown that Cramer often gets it wrong, including with major stocks like Microsoft and Coinbase.
As a result, some investors on X have jokingly panicked and suggested shorting whenever Cramer makes a bullish recommendation. This has also led to the development of strategies and funds that aim to invest opposite to Cramer’s analysis.
Quiver Quantitative, a platform known for tracking suspicious congressional trades, has created its own inverse Cramer strategy. This strategy involves shorting the TV personality’s most recommended stocks within the last 30 days. Since its inception in early 2021, the “Inverse Cramer” shorting strategy has achieved an overall return rate of 83.32% and a return of 15.81% in the last 32 weeks.
However, in the short term, the strategy has been less successful. As of January 15, it is down 3.62% in the last 30 days and 0.81% in the last trimester.
Other Ways of Betting Against Jim Cramer
Due to the increasing popularity of investing against Cramer’s advice, traders now have multiple options to go against his recommendations. For example, the smartphone platform Autopilot allows investors to copy-trade the Inverse Cramer portfolio.
In addition, Tuttle Capital Management launched two exchange-traded funds (ETFs) in March 2023 that focus on Cramer. The Inverse Cramer Tracker ETF (SJIM) attempts to short his recommendations and go long on stocks he is bearish on, while the Long Cramer Tracker ETF (LJIM) offers long exposure to his picks.
Hot Take: The Risks and Rewards of Betting Against Jim Cramer
While shorting Cramer’s picks or investing against his recommendations may seem appealing, it is important to consider the risks and rewards involved. Cramer’s track record has shown that he can be wrong in his analysis, but there are no guarantees that betting against him will always result in success.
Investors should thoroughly research and analyze their investment decisions, taking into account their own risk tolerance and financial goals. It may be wise to diversify portfolios and not solely rely on strategies that go against Cramer’s advice.
Ultimately, investing is a personal decision, and it is crucial to carefully weigh the potential benefits and drawbacks before making any investment moves based on Cramer’s analysis.
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