OLD Media Moves

Why Jim Cramer is bad for viewers

April 30, 2009

Nick Kapur of The Motley Fool writes that CNBC “Mad Money” host Jim Cramer may have good intentions of helping his viewers, but his strategy of accomplishing that feat is all wrong.

Kapur writes, “It’s like Punxsutawney Phil. The furry little critter climbs out of his hole and either sees his shadow or he doesn’t. Whichever it is, the result has nothing to do with whether winter is over — just like a stock market prediction has nothing to do with the market’s movements.

“The scary part is that Cramer has flip-flopped numerous times, calling the bottom already several times in recent months. While CNBC may gloss over this fact, I’ve taken careful notice. Don’t forget about his theory that 2008 would be the year of natural gas. Ouch.

“The talking heads on TV get paid to put on a song-and-dance show and attract viewers. Your education or your personal success, as Jon Stewart has kindly brought to light, is a secondary priority (or not a consideration at all).

“Whether Cramer turns out to be right or wrong in the end just isn’t the point. The point is that no one can claim to predict the markets — no one. If you follow the advice of those who say they can, it’s likely to cost you thousands (if not more).”

Read more here.

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