Joe,
I agree with your statement about Cramer being honest, insofar as
"honest" means that one states truthfully what one believes.
Cramer is full of conviction, but as old Friedrich said, "convictions
are greater enemies of the truth than lies."
Perhaps following Cramer's example has saved you money. He is, no
doubt, an astute market player. Nonetheless, if you would have
simply bought and held equal parts of DELL, AOL, INTC, LU, etc. over
the past 3-5 years, then your market returns would have well exceeded
Cramer's... even more so when you consider the tax implications of
active trading. Yet these are the stocks he touts. Why are his
returns inferior to a simple buy-and-hold strategy? What is the
value added by his active trading?
Cramer is worth listening to, if one can wade through the
self-justifying logic that he expounds in order to avoid these
two questions. Self-Justification is currency on Wall Street. This
is the reason that there are more mutual funds than stocks on the
NYSE and Nasdaq combined. This is why Cramer is a respected
financial journalist, television personality, and fund manager.
Disclaimer:
I don't hold WAVO, I never have, and probably never will.
Andrew Aiken |
