Stock traders eagerly awaiting Jim Cramer’s recommendations so they can do the exact opposite
NEW YORK—Stock traders across the country are eagerly awaiting the latest recommendations from CNBC’s Jim Cramer, only to immediately do the exact opposite.
According to sources within the financial industry, traders have grown tired of Cramer’s hyperbolic predictions and erratic stock picks, and have instead turned to his advice as a surefire way to lose money.
“I used to follow Jim’s picks religiously, but then I realized that whatever he recommended was usually a terrible idea,” said one anonymous trader. “Now, I just wait for him to announce his latest recommendation, and then I immediately short that stock. It’s like clockwork.”
Cramer, for his part, seems unfazed by the phenomenon. “Look, I’ve made some bad calls in the past, sure,” he said in a recent interview. “But my track record speaks for itself. I’m still one of the most respected voices in the industry.”
Despite Cramer’s confidence, however, the trend seems to be catching on. Traders across Wall Street are reportedly sharing tips on social media about how to profit from doing the opposite of Cramer’s picks, and some have even started to develop automated trading algorithms that scan his recommendations in real time.
“It’s kind of like a game now,” said another anonymous trader. “We all know that whatever Cramer says, we should do the opposite. It’s like he’s our own personal contrarian indicator.”
For now, it seems that the “Cramer effect” is here to stay. While some analysts have suggested that traders will eventually tire of the trend and return to more traditional investment strategies, others believe that Cramer’s influence may have irreparably damaged his reputation in the eyes of the trading community.
“I don’t know if Jim will ever be able to shake this,” said one industry insider. “The fact that traders are actively seeking out his recommendations just so they can do the opposite is a pretty damning indictment of his credibility.”