According to a detailed analysis published in October 2010, viewers who bought the stocks Cramer recommended the previous night lost money relative to the market overall.
Even people who held those stocks for as long as 50 days lost an average of nearly 10 per cent relative to the market. For those stocks with the highest overnight returns after Cramer’s recommendations, the 50-day performance was even worse: negative 29.54 per cent for the top quintile.
In other words, according to this study, if you watch Mad Money and follow Jim Cramer’s top recommendations, you will lose almost one-third of your money in less than two months. Not very many people can afford to follow that kind of advice. The study also found that an investment in the stocks Cramer recommended significantly underperformed the market over the longer term.
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