"Mad Money" marks second anniversary
Jim Cramer‘s “Mad Money” show on cable network CNBC marks its second anniversary this week, and Judith Gillies of the Washington Post takes a look at his popularity and his success.
Gillies wrote, “He cautions viewers to use only ‘mad money’ – cash they can afford to lose – not their retirement nest eggs. And he stresses that viewers should not buy a stock, especially in after-hours trading, just because he mentions it. They should wait a few days, he says, and do their homework (he recommends about an hour a week per stock) before investing.
“Cramer ‘has such a big following that there is a considerable pop in the price of any stock he recommends,’ said Burton G. Malkiel, an economics professor at Princeton University and author of the recently revised ‘A Random Walk Down Wall Street.’ ‘I applaud him for calling the show Mad Money’ because if you want to have some fun with some extra money, it’s perfectly okay – but never with serious money.’
“Wednesday’s episode of ‘Mad Money’ will look at highlights of the past year, including clips of guests Cramer has interviewed on the show. Typically, he begins ‘Mad Money’ with musings on particular aspects of investing. He also takes calls about specific stocks from viewers – who often greet him with variations of ‘boo-yah,’ a phrase that hearkens back to an enthusiastic caller from New Orleans. Other segments might include callers asking ‘Am I Diversified?’ or Cramer interviewing chief executives or experts in person or by phone.
“The hour-long show usually is taped at CNBC’s studios in Englewood Cliffs, N.J., one to two hours before it airs. That barely gives the staff time to prepare on-screen stock charts, factoids and other graphics.”
Read more here.