Anyone who regularly watches or has only seen Jim Cramer’s TV show “Mad Money” even just once notices that the former fund manager, now a TV personality, makes a ton of stock recommendations while on air.
So many that it is hard to keep up with what companies he likes and which ones he would sell.
Luckily, you will now never have to worry about trying to keep track of his stock picks while he is on air. Two new Exchange Traded Funds will keep track of his stock picks for you and not only keep track of them but give you an accessible, one-stop investment vehicle you can use to follow his advice.
The Tuttle Long Cramer Tracker ETF (LJIM) buys stocks that Jim Cramer tells his viewers on “Mad Money” that he likes. The fund managers also follow Jim on Twitter, so if he tweets that he is optimistic about a stock, the fund can also track those picks. Furthermore, LJIM will also short stocks that Cramer expresses a negative opinion on.
LJIM began trading on March 2nd of, 2023, with an expense ratio of 1.2%. The fund already has over $254 million in assets. The top ten holdings represent 31% of the fund.
However, the fund prospectus explains that LJIM will have a portfolio of between 20 to 50 stocks.
Therefore, the heavy concentration will likely always be present with LJIM. Finally, the balance between each stock held is very close, with most holdings representing just slightly above or below the 3% mark.
The fund holds a very diverse group of stocks. The largest sector is technology, with 18% of assets. Then electronic technology makes up 14.78% of assets. Health technology, consumer services, and finance round out the top five sectors in LJIM.
LJIM is a worthy investment if you are a disciple of Jim Cramer and want to own the stocks he recommends to TV viewers and social media followers.
However, if you believe Jim Cramer is a hack and likes to hear himself talk, then the Tuttle Inverse Cramer Tracker ETF (SJIM) may be for you. SJIM is the short version of LJIM.
For example, when Jim Cramer recommends a stock, LJIM buys it. But SJIM would be shorting a stock that Jim Cramer likes. The opposite is also true. When Jim Cramer explains to his audience that he does not want a particular stock, LJIM would either sell it, or they may even short it. In that same scenario, SJIm would be going long a stock that Cramer says he does not like. And if Jim says he does not like something, SJIm would go long those stocks.
It is hard to deny that Jim Cramer is not a good investor. Watching just a few minutes of “Mad Money,” anyone can see that his knowledge of the stock market is next level.
However, because he makes so many picks, performing well on every stock he picks is very hard.
Furthermore, while Cramer is on TV, particularly live TV, Cramer has split seconds to decide whether the call-in investor should buy or sell a specific stock.
Lastly, because he has such a short time to decide, it is easy to see situations where Jim would miss a recently published news piece that is either pro or con a stock that Jim may be making a call on.
Because stock picking while on live TV is very difficult, investors should be cautious about which ETF mentioned they may want to own, the long or short version.
Remember this also, at this time, Cramer is an entertainer while on TV or in the Twitter world. There are not very many individual stock investors who outpace the market averages, let alone while trying to make split-second stock picks while also entertaining people.
So regardless which ETF you like more, be cautious.
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Disclosure: This contributor did not hold a position in any investment mentioned above at the time this blog post was published. This article is the opinion of the contributor themselves. The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. This contributor is not receiving compensation (other than from INO.com) for their opinion.