"Mr. Cramer's stock market calls since May 2000 have low consistency and approximately coin-flip accuracy", according to a study by CXO Advisory Group. Specifically:
- Mr. Cramer is right about 50% (25 out of 51) of the time with his stock market predictions...
- His predictions sometimes swing dramatically from optimistic to pessimistic, and back again, over short periods.
- Not good for TheStreet.com (ticker: TSCM), which Jim Cramer is the public face of. I've already pointed out that TheStreet.com's brand seems to be overly dependent on founder James Cramer, and that may be one of the factors putting off potential acquirers.
- Jim Cramer had a great (though rocky) track record as a hedge fund manager. What's gone wrong?
The CXO study is here.
Full disclosure: at the time of writing I'm short TSCM.
Not subscribed to The Internet Stock Blog? You can get updated headlines for free by adding The Internet Stock Blog to your My Yahoo page. Just log into your My Yahoo
page, then go to The Internet Stock Blog and click on the "+ My Yahoo"
button on the top right of your screen. You can do the same for other sites, such as The China Stock Blog, ETF Investor, Radical Guides and Seeking Alpha.