Categories: OLD Media Moves

Cramer admits advice was wrong

CNBC “Mad Money” host Jim Cramer admitted he made a mistake when he told investors to sell stocks in the wake of the passing of the health care reform bill, writes Craig Jones of Benzinga.

Jones writes, “His first mistake was believing that the health care reform will hurt earnings of the companies. Caterpillar Inc. announced that this bill will cost them approximately $100 million, but the stock is trading near its 52-week high.

“He also thought that many money managers believed that the bill will not pass, and after realizing the mistake they would turn to panic selling. That didn’t happen either.

“Cramer also thought that the market would be sophisticated enough to realize that stocks needed to be sold ahead of the tax changes coming. But tax changes are not coming until the next year, and nobody is thinking that far away, although that would be a rational thing to do.”