Is Jim Cramer good? The former hedge fund manager, famous American television personality, and host of CNBC’s Mad Money, Jim Cramer’s lead a dynamic life. Born in 1955 to hardworking entrepreneurs, the stage was set for a lifetime of creativity and success. From selling ice cream at Phillies games, law school at Harvard, reporting on the Bundy murders in Flordia to banking $10 million a year managing a hedge fund, I’d say Jim Cramer is good. While in law school, Cramer got his feet wet investing in the stock market. Not only did he get his feet wet, he even went as far as promoting his stock picks; talk about confidence! Moreover, Jim was so good with his picks that he landed a job with Goldman Sachs as a stockbroker.
With confidence ablaze, Jim started his own hedge fund company in 1987. Known as Cramer & Co.6, he averaged over $10 million a year in returns for pretty much 14 years straight!
His entrepreneurial flair was inherited from his parents. As a result, Cramer co-founded TheStreet.com in 1996. So whether you are planning for retirement, looking to invest, or just yearning for financial guidance, the Street is your go-to for the absolute best resources to help you improve your fiscal habits and practices.
With such a wide range of materials, their goal is to improve your financial health and your mental and emotional well-being.
Here are some interesting things to know if you’re wondering is Jim Cramer good?
- Cramer had only one year of negative returns running a hedge fund from 1987 to 2000.
- “Mad Money,” the tv show Jim Cramer hosts, aims to educate people how to think like professional investors, not just telling them what to think.
- Cramer co-founded The Street, and at one point, it reached a market cap of $1.7 billion.
Is Jim Cramer Good on Mad Money
As if running a multi-million dollar hedge fund and the website wasn’t enough, Jim decided to dip his toes in television. First airing on CNBC in March of 2015, Mad Money focuses on investing and speculating in publicly traded stocks. Likewise, the goal of their show is to teach people how to think like the pros.
In fact, Mad Money is one of the most popular investment shows on television. Due to his success on “Mad Money,” Jim’s even had guest appearances on “Arrested Development,” “The Tonight Show,” and “The Daily Show.”
So to answer the question, is Jim Cramer good? I would say most certainly. So with that in mind and September upon us, we’d be wise to heed his warnings. That said, below are a few reasons why Jim Cramer is concerned about the stock market.
Why Is Jim Cramer Concerned About The Stock Market?
At the beginning of this month, Jim Cramer raised the flag on the potential for volatility in the market in September. I’d liken September in the stock market to sailing in choppy seas.
Unpredictable at best, dangerous at worst. September is generally a rocky month for stocks. And we’ve got a whole other host of issues leading to a perfect storm of events. Jim Cramer believes we’re in the midst of a perfect storm.
Those of you who are in the marine industry know that a perfect storm is an unusually severe storm that results from a rare combination of meteorological phenomena.
Unfortunately, in Jim’s opinion, a perfect storm is brewing. Not only are we in September, but we’ve also got a rare combination of circumstances potentially aggravating the already precarious situation.
Below are a few reasons why Jim Cramer is concerned about the stock market.
Warnings From Companies
The news looks bleak, and companies aren’t hiding it. Just two weeks ago, three heavy hitters in the building and paint industry, PPG Industries, Sherwin Williams and homebuilder PulteGroup, sent dire warnings to shareholders. Not only are earnings down, but supply chain challenges coupled with rising costs of materials threaten to sink the ship.
According to Cramer, supply problems aren’t going away any time soon. But on a positive note, there’s still demand for such materials, so their stock price is still holding its own.
The Federal Reserve
As inflation continues to rise, so does the pressure on Chairman Jerome Powell to reassess his stance. Regardless of the pressure, Powell continues to defend the Central Bank’s decision to support the U.S. economy. According to Cramer, the pressure to change his opinion on inflation could intensify in September as inflation is well above 2%.
Although Cramer feels that raising interest rates would be the “magic elixir” to tamping down inflation, it would “destroy demand which crushes earnings, which in turn crushes stocks. What does that mean for interest rates?
According to Cramer, “If rates head higher, it creates more competition for high-yielding dividend stocks. These days, not many stocks are supported by their yields, but there will be even fewer if rates go up,” Cramer said. Is Jim Cramer good? Yes. What does he have to say about congress?
According to the ” Mad Money ” host, despite the Democrats’ desire to pass their $3.5 trillion budget reconciliation package, it’s a bit of a double-edged sword. Even though it would supercharge the economy and create jobs, the U.S. already has 10 million job openings. As a result, Jim believes wages would increase as companies vie for workers. Personally, I think this could be a good thing if you work for a living. But not so much in Jim’s opinion if you own stocks.
On the flip side, investors depending on the big stimulus package will be disappointed. “Without this, you can’t prop up the cyclicals,” Cramer said.”
Does Cramer Influence the Market?
Is Jim Cramer good enough to influence the market? Yes. His Mad Money show absolutely moves stock prices.
With new companies going public and constantly adding to the supply of stocks to the market, it can act “like a wet blanket dousing the fire of the buyers,” Cramer said.
“Of course, this IPO cycle will eventually play out like they always do: with a sell-off that lowers all prices to levels where stocks are more attractive,” Cramer said. “We can’t seem to stop this deal flow.”
He also has geopolitical concerns. In fact, Cramer truly is concerned about China. In particular, President Xi Jinping’s unpredictability regarding Taiwan.
For those who don’t know, Taiwan plays a crucial role in the international semiconductor trade.
“Here is the underside line: On the finish of the day, I feel we will cope with any of those points, however not all of a sudden—at the very least not without decreased inventory costs,” Cramer mentioned. “And decrease inventory costs is what September is all about.”
Are Jim Cramer’s Stock Picks Any Good?
If you’re relying solely on someone to give you stock tips, you’ll be sorely disappointed—no one’s right all the time. While many people rely heavily on Cramer’s stock picks to boost their portfolios, he’s only human. Advice isn’t infallible.
On the other hand, Some experts, like Warren Buffett, suggest skipping stocks altogether and stick with index funds for long-term growth. The choice is yours, but take the time and do your own research. Learn what fundamentals are essential for investing and take anyone’s advice with a grain of salt.
The Bullish Bears will show you how to profit from volatility. So if you’re looking for someone to teach you how to profit from volatility without sinking your bank account, I would highly recommend Bullish Bears.
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