Philip Davis

November Market Analysis - What a Month!

Try googling "the cramer effect," there's a lot written on it and a few weeks ago I actually found a college statistics paper studying his effect on stocks (not favorable, it backed up my trap premise).

Whether he does it on purpose or if he is just irresponsible, clearly his guiding sheep to the slaughter on momentum stocks that are 2/3 or more up a cycle is very damaging to the casual investor following his picks. When I do a show, I have already decided that I will call bottoms on stocks (like SBUX, WM and CC recently) and tell people how to pick them up as good long-term investments.

I don't need to post spectacular gains on a TV show as the investing style is inappropriate for 90% of the audience, I'd rather have a show where, a year later, the picks average 18% and you didn't have to be a timing genius to get in on the trade.

Even on my member site we have long and short-term portfolios as not everyone wants to be a gunslinger and getting reasonable returns from fairly safe plays is very appealing to the majority.