Cramer's stock picks "harmless"

Darla Mercado of Investment News writes Sunday about research performed by two Northeastern University business professors on CNBC “Mad Money” host Jim Cramer‘s stock picks.

Their conclusion: His picks are harmless.

Mercado writes, “On average, ‘buy’ stocks earned an abnormal return of 1.94% the day after Mr. Cramer made his recommendation. Abnormal returns are the difference between a stock’s performance compared with the average market performance in a given period and are sometimes triggered by events specific to the stock.

“Going back 30 days before the recommendation, Mr. Cramer’s ‘buy’ stocks yielded an average 3.55% return when adjusted for overall market activity.

“However, after he recommended a stock, abnormal returns died out, declining by 2.03% between two and 30 days later, on average.”

Read more here.