Lawd, I hate Jim Cramer (SJIM)
Jim Cramer has earned my respect, I dislike him deeply but respect him. He use to live in his car but has worked his way to being now worth $150 million dollars. However, he’s a gremlin. Whenever I tune in to watch Jim, I just get a wall of noise with little to no information. I think what frustrates me most about Jim is his attitude that he knows more and that you should listen to him because he has a TV show. This attitude combined with a paltry track record really grates on me. I think he has to make all that noise and talk really fast, to cover up his true belief in whatever he is talking about at the moment. The problem is, that nobody except for a very very select few can predict the market or stocks that will jump. Except, Jim gets on his show every single day and acts like he can choose the next big thing, people follow his advice and they lose money. I don’t even have the time to list all of these embarrassing failures (which anyone would make in that situation) in which it is very likely that someone lost real money. It is just simply impossible to make the right call on five or six stocks every single day, there just aren’t that many buys in the market. His callousness towards the loss he causes angers me deeply. He is obviously a very smart guy, which is why he has to realize that there is a very large chance that he will make the wrong call, and he has to recognize that it is a very consistent issue. Again, this is not a Jim Cramer-specific issue. If I got up there and was asked to make a prediction every single day for multiple stocks, I would get so many wrong. I wish that he would just acknowledge this fact and lower himself back to ground level. Anyways, I say all of this to mean that he is wrong so much, so how do we make money? The answer comes from Northern Lights Fund Trust, a fund that has an ETF named SJIM. SJIM (short Jim) is an inverse fund that specifically picks against Cramer, this doesn’t come from a dislike of Jim, but more the basic idea that he picks too many stocks and that the losses outweigh the gains. The flaw in this theory is that historically the stock market has always trended upwards and that generally inverse picks aren’t too profitable. Since its creation in mid-March, SJIM is down two percent, compared with the S and P 500 which is up eight percent. To me, this is a good thing. SJIM is only down two percent, while the market is up eight percent. When the market goes down, I would expect large gains. My take on SJIM is that in the market, generally when making consistent predictions on TV you have a 50/50 chance of getting the prediction correct. Jim makes the correct prediction about 46% of the time according to the Dow Jones Newswire. I own some SJIM, but more because I want to profit off of Jim’s ineptitude. However, if I’m being completely honest with myself, I wouldn’t expect gains out of this fund, if they exist they will be meager. Will I stop owning SJIM? No. I will keep buying it, and I will keep betting against Jim Cramer. As Matthew Tuttle, who created SJIM once said, “Some people are just bad at stuff.” Read their website on SJIM, they dress it up a lot, but it comes down simply to whether you think Jim Cramer knows what he is doing or not. I do not think he knows what he is doing, but we will see.
https://www.crameretfs.com/sjim (SJIM website)
