Tuesday, September 20, 2005

Jim Cramer 'the housing bubble is dead'

Jim Cramer declared on his 'Mad Money' show on Monday night that 'the housing bubble is dead.'
The second-home market in particular is being hit by a triple whammy of rising oil and gas prices, rising raw materials costs and rising interest rates, Cramer said.

Jim Cramer does not have much respect in my book. As oc0010 eloquently wrote in a comment on the Housing Bubble 2 Blog "I cant believe what a waffler this guy is. Just a few months ago he was saying there is no housing bubble. Now he sees that he was wrong so he changes his mind. He did the same thing with the dotcom bust." Nevertheless, Jim Cramer has a large audience and he joins a growing chorus of 'experts' who now take a bubblehead position.

2 comments:

  1. David

    opportunist is a better word. The man has little integrity. Everything seems to be pointing to a drastic slowdown in the economy in the next year. Be nimble and quick if you have risky equities. If you are 'housing rich' get out now.

    ReplyDelete
  2. I think Cramer is a total ass, but I understand his point (and the waffle) in context. That being said I also think that you cannot actually follow his recommendations and make money. You have to follow his thinking and then guess correctly.

    Basically his investing theory:

    1. Find/follow a trend
    2. Invest in the "best" company in that trend. Best is the company other investors are most likely to jump into for whatever reason.

    3. Jump out once there's been a run up.

    That's about it. He will recommend getting into something knowing it's got 2-3 months more of run up.

    The PHLX HOUSING SECTOR INDEX went from 450 to 600 May 1 to Aug 1, when many knew in April housing was peaking.

    and I'd like shove a "boo-yah" down his throat.

    ReplyDelete