Be patient with Cramer stock picks
In an interview with the Associated Press, “Mad Money” host Jim Cramer advises his watchers to be patient with the stock picks from his show.
Cramer told The Associated Press he repeatedly warns his audience to steer clear of after-hours trading, when he says buyers outnumber sellers, making it easier to get burned.
“The takeaway of show shouldnâ€™t be whether you made money in a 24 hour period,’ Cramer said in the story. The study “basically agreed with what I say every night, which is â€™Please wait. Please do your homework.â€™ There is a responsibility on people watching the show and there really isnâ€™t a rush to buy things.” Still, Cramer also said he doesnâ€™t see a need to wait much more than a day to act.
The story also said, “Importantly, the researchers didnâ€™t pass any judgement on Cramerâ€™s stock-picking prowess or concern themselves with the longer-term performance of the companies.
“The main lesson is that those who believe Cramerâ€™s insight is valuable may do themselves a favor by stepping back and waiting for the initial storm of activity to blow over. Any gains to be had with his recommendations will only be enhanced by avoiding a costly mad rush to follow the Mad Money.”
Read more here.