GKM

Tracking Jim Cramer's Performance: January 2007 Stock Picks

The author was being considerably kind since most of Cramer's worst calls were done later in 2007. Anyone remember Google to $1000?

Cramer is a trend follower and that is it. When he is super bullish, get bearish and when he is super bearish, get bullish. The reason he probably did well as a hedge fund manager was he would swing from one to the other very quickly (once he'd actually figured out that he was on the wrong side which could take some time) and the ride the new trend. If that is the case, then even he could make money.

Therefore, unless you are trading the market like him then you should only use his advice as a market barometer and do the opposite. He is starting to get super bearish so I know that the bottom will be coming once he declares that we will never again have a hope of positive returns on the long side.