Friday, May 20, 2011

Busted Celebrity Index | Buy Celebrity Clothes

Immediately after the stock market fell in October 2008, hundreds of thousands of loyal viewers tuned into "Mad Money" Jim Cramer (CNBC) for advice on the market where he was going and what to do with your money. Cramer has gained considerable celebrity and a huge following due to its presentation and super fun selection of safe values.

But really their selections to the pan? Are you better when you follow his advice? According to a recent article in Barron's website "Star Cramer Stock Picks overshadows his" no good evidence that Cramer's picks outperform the market.

In fact, more than one study shows that on average "Cramer recommendations underperform the market by most measures. From May to December last year, for example, the market lost 30%. Following Cramer buy and sell would have added another five points, until the loss, according to our latest report. "

In other words, Cramer's advice to the letter that have led to a greater loss than if you just ignore and put their money in an index fund.

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