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Stop taking investment “advice” from the TV…
A retired finance professor “invested” (paper trades) in CNBC host Jim Cramer’s “49 Stocks to Buy Right Now” list.
Cramer made the list in April 2015. He said it comprised “stocks that are clearly marked as winners no matter what.”
One year later, the results are in…
Thirty-three of Cramer’s 49 positions were losers. Twenty-five were down double digits. And his total returns were -9.18%.
(The S&P 500 returned -1.38% over the same time.)
There’s more to successful stock investing than on-air theatrics and pressing big red buttons. Remember, people like Cramer get paid for high ratings… not for sound financial advice. His interests are not aligned with those of his audience.
Bottom line: Don’t trust the TV for investment recommendations. Turn the “noise” off.
(Plus, taking 49 positions is not just expensive (brokerage fees)… it’s 100% unnecessary. See why in our next item…)