I always try to watch Jim Cramer on CNBC.
I know, you’re probably wondering why, but to be honest he has some good strengths & weaknesses and I like learning from others successes and failures. The one thing I’ll say about Jim is he has a very unique way of digging into the fundamentals of a company, and if you listen to his reasoning it’s actually not bad.
That said, he is almost always late to the punch. I have been watching him for years, and though we all have hot & cold streaks, Jim Cramer is not riding the edge like many of the people who use new media are, including Team BULLS.
I can point out many examples where Jim has been wrong and right, but when it comes to emerging trends he’s usually late. Being late is okay for someone with decades of time to build their long term retirement portfolio, but if you’re like us at BULLS we like adrenaline – and therefore we tend to stay far ahead of the trends.
Jim was way late on coal this year. We were buying coal when it hit the bottom last year, and his reasoning was “Obama doesn’t like it so coal is dead.” – bad reasoning, and that is one of the many reasons I went bullish on coal.
Jim was late on Apple, wrong on Palm – but then switched on it, and if I recall correctly he switched back again which really confused me… Jim claims to have been early on Bank of America. I remember buying the heck out of BAC and BCS at $4 each while Jim was bearish on banks. He claims he put it as a buy on his speculative portfolio but I never recall him doing this – perhaps I’m wrong, I just remember he was incredibly bearish on it. Jim DID call the bottom of the market in March, and I too was very bullish around that time. Credit to Jim for sticking with his bullish sentiment throughout the year, you can’t fault him for that!
We’ve all been wrong or right on some things, it’s just important to understand how to mitigate your risk – also equally important is to get out of your comfort zone and think outside the box!
The latest macro trend that Jim is sorely wrong on is China. He does not want you to invest in any Chinese companies, and prefers that you find American companies first. What’s more, his reasonings are so outlandish I simply don’t get it. What Jim hasn’t figured out is American companies are investing HEAVILY in China, so using his logic of fundamental breakdowns, why would you invest in China via large American companies when you can find smaller component companies in China that work backwards into American firms?
Whatever the case, call me a fool if you will – but mark this post. Jim Cramer will go bullish on China sometime this year. It’ll start with one or two companies, and he’ll make it pretty obvious that he’s switched camps again. Along with Jim, many of the funds and traders that you and I know will all start digging harder on China.
I wouldn’t be surprised to see Jim decorate his studio red, and praise China for their government actions. He might even say “Communism in China actually works”. Who knows. Maybe he’ll pull out the gong. Rest assured when Jim is bullish on China we will be working on the next big emerging trend, which I’m already exploring. Travel starts soon!
Anyways, this week check my ranges on a number of stocks I posted in the Boom Factory, they’re all on fire – and there may still be an opportunity to buy on Monday.