Trader’s Narrative

This is a clip of Jim Cramer on Conan. I think its from August 2005 so its not recent. But it is hilarious. It is only 4 minutes long so don’t miss it.

Who do you want to get stock information from?
A guy in a diaper…

This may get the Mad Money fans riled up but I don’t really think much of Cramer. The guy is all schtik, no substance. And please don’t tell me he was a hedge fund manager who made money.

He worked with some very good traders. Todd Harrison for example. And as he calls her “the Trading Goddess” (his wife) who single handedly saved his butt in 1987 when he wanted to pile on long. She was the one that flipped the fund short before the crash and made them some major ching.

The only reason Cramer made any money was because back then there wasn’t Regulation FD. He’d get calls from investment bank contacts with upcoming changes in coverage for stocks (upgrades/downgrades). He would reward them by routing trades through their brokerage arms. How hard is it to trade with that kind of advantage? Any wonder then that he riled against Reg FD as it was proposed and going into effect?

To see how he’s done in a post-Regulation FD environment, check out his abysmal performance in his thestreet.com picks. Even in a bull market he performed very poorly.

Finally, if you haven’t seen this yet, check out how vehemently he believed in the bubble.