Monday, January 19, 2009

Please don't listen to CNBC's Jim Cramer; he is wrong again about investing in stock market

Folks, for your own good, please do not listen to CNBC's Jim Cramer.

And I give this advice as someone who got out of Dow above 12,000, while Cramer was bringing a buddy on his show and recommending you buy the company stock his buddy was peddling. Two weeks later, the financial floor fell out from under the company.

Cramer was forced to apologize, but now he is back giving bad advice, as in today's show.

He was telling folks with 401ks to take a risk with their money and not leave it in money market or stable value funds. You bastard!

He actually had the gall to label such safe practices as reckless. He is a fool. Keepp your money in cash until the market crashes to 6,000. Then reinvest low and rise with the market's rebound.

Now that may not happen until the end of this year. But be patient and keep your money protected, particularly indispensable funds in your 401k.

And keep away from CNBC when Cramer is on. He again does not know what he is talking about. He wants to lure you away from the sidelines and make money for his buddies by getting you to invest again. And he may get something from his buddies for encouraging you to take such a risk.

Be smart. Be patient. And don't listen to a crazy man who already cheated you once.

1 comment:

Anonymous said...

You are right and wrong at the same time. Cramer has been saying all along to slowly average down in selective stocks as this market falls and realize some quick gains that this very volatile market offers to add to your cash position.

It is very hard to call a bottom, even the "experts" disagree on a daily basis. Averaging down allows you to keep cash available while slowly building up positions. When the S&P has started to drop below 780 I have started to slowly average in. To suggest that someone should wait until Dow 6000 and then dump it in at once is foolish. What if it bottoms as 6500? By the time we realize it has bottomed you will have missed a move large off the bottom. Also you should be looking at the more inclusive S&P 500 as a guage, not the Dow.