Jim Cramer’s Stock Picking: A Financial Fiasco
Betting against Jim Cramer: a bold move or a one-way ticket to financial oblivion? About 11 months ago, Tuttle Capital Management launched the Inverse Cramer Tracker ETF (SJIM), a fantastically ironic initiative aimed at taking advantage of Cramer’s illustrious track record in the realm of poor stock selection. It’s like trying to make a profit by betting on the worst-performing horse in the race, only to realize the horse is actually a turtle in disguise.
To keep things balanced, SJIM entered the market alongside the Long Cramer Tracker (LJIM), which, in a moment of questionable judgment, chose to bask in the glory of stocks Cramer endorsed. In essence, while SJIM was attempting to make a killing by going against Cramer, LJIM was playing the role of the enthusiastic little puppy chasing after his every whimsical command. Spoiler alert: it didn’t end well for either.
Alas, the harsh reality struck when LJIM shut down just six months post-launch, proving that even the most optimistic stock strategies can collapse like a poorly constructed house of cards. Fast forward five months, and SJIM is now facing its own grim end. Tuttle Capital Management recently announced that they’d be pulling the plug on SJIM this February—talk about a one-year anniversary party no one wants to attend.
Matthew Tuttle, the Fund’s portfolio manager, delivered the news with an air of resignation, explaining that he simply didn’t have the time to keep the ship afloat. Perhaps he was too busy enjoying a breather from the exhausting task of monitoring Cramer’s daily ramblings on CNBC and Twitter. You know, the kind of daily grind that can turn even the most resilient market enthusiast into a twitching ball of anxiety.
“We launched the ETF to highlight the perils of following TV stockpickers, specifically Jim Cramer, and the exhilarating lack of accountability in the financial world,” Tuttle stated. “While we have succeeded in showcasing the spectacle, it seems retail investors prefer their portfolios spicy, featuring volatile options that elicit a more exciting adrenaline rush.” In short, forget personal finance; it’s all about thrill-seeking now!
As of last Friday, SJIM was sitting on a pitiful $2 million in assets. To put that into perspective, that’s about enough for a nice vacation, but hardly sufficient for a robust ETF sporting a strategy resembling a convoluted game of telephone. Tuttle’s team had the challenging task of interpreting Cramer’s incessant market chatter, which could make even the most seasoned investors seem like they were reading a foreign language upside down.
Then there’s the reality check: since SJIM debuted, it has plummeted by 15%. Meanwhile, the S&P 500 soared 25%, leaving SJIM in the dust like last year’s fashion trend. Tuttle, ever the optimist, intends to keep publishing his Cramer Tracker daily newsletter for those daring enough to track Cramer’s recommendations and perhaps try their hand at betting against him—effectively becoming the stock market’s version of the daredevil at a circus.
As we bid adieu to SJIM, one cannot help but marvel at the wild ride of attempting to go against the grain of an unpredictable market. It could be said that the only reliable investment lesson we’ve learned here is that some strategies are best left untried, much like attempting to time the market based on your favorite late-night TV personality’s whims. Cheers to Cramer and his uncanny ability to consistently underperform—may our wallets recover swiftly.
