If you follow Jim Cramer’s CNBC show, “Mad Money,” you finally heard advice that may help improve your odds of success.
Cramer once flipped out on a CNBC guest who promoted John Bogle’s approach to investing, screaming “I’ve had it with the people who tell me about the index fund.”
I’ve mentioned Cramer in some of my blogs, media mentions, and articles as an example of why you should ignore the financial news media. His show is entertainment, as is almost everything else you see on CNBC and the other financial news channels. The advice and information you get from these shows rarely have anything to do with principles that actually help your odds; on the contrary, watching these channels can be detrimental to your investment success. And if you like picking stocks or timing the market, then you shouldn’t have been watching Cramer at all. His track record is dismal.
It took Cramer a long time to “evolve,” despite decades of data, research, and empirical evidence that showed speculation to be a losing investment strategy. Rather than being criticized for ignoring the evidence for so long, he should be given some credit for admitting the change in his attitude toward indexing after all this time. His audience will benefit. Here’s the full article. And here’s part of the clip: