Author Topic: Jim Cramer recommends 50% CDs for retirement portfolio?!  (Read 2166 times)

FIREin2018?

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Jim Cramer recommends 50% CDs for retirement portfolio?!
« on: March 21, 2019, 08:31:13 AM »
https://www.thestreet.com/video/portfolio-retirement-jim-cramer-14902385

"Cramer said that if he were to retire, he likes 50% CD. "
w t f?

a cd ladder instead of Bonds in a 50% stock/50% bond portfolio after you retire??

matchewed

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Re: Jim Cramer recommends 50% CDs for retirement portfolio?!
« Reply #1 on: March 21, 2019, 08:44:28 AM »
You do know that retirement advice in mainstream financial circles almost never applies to FIRE.

UnleashHell

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Re: Jim Cramer recommends 50% CDs for retirement portfolio?!
« Reply #2 on: March 21, 2019, 09:00:43 AM »
I'd recommend doing the opposite of anything he says.

MustacheAndaHalf

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Re: Jim Cramer recommends 50% CDs for retirement portfolio?!
« Reply #3 on: March 21, 2019, 10:04:56 AM »
Jim Cramer probably has over $100 million in assets, so CDs would earn him millions per year.  And he's already in his 60s, so I think he could live on a few million a year for 25 years or so.  That doesn't mean it works for everyone else, though.

But I found a second interesting point: he can't buy stocks.  Ironic, no?

"During that time, he was also an "editor at large" for SmartMoney magazine and was accused of unethically combining his investing and reporting activities when he bought stocks that he recommended just before his recommendation article came out, contributing to a $2 million personal gain.[18] Today, Cramer is barred by CNBC from trading stocks with his personal funds although he makes picks and sells his recommendations."
https://en.wikipedia.org/wiki/Jim_Cramer#Investing

UnleashHell

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Re: Jim Cramer recommends 50% CDs for retirement portfolio?!
« Reply #4 on: March 21, 2019, 11:20:46 AM »
Jim Cramer probably has over $100 million in assets, so CDs would earn him millions per year.  And he's already in his 60s, so I think he could live on a few million a year for 25 years or so.  That doesn't mean it works for everyone else, though.

But I found a second interesting point: he can't buy stocks.  Ironic, no?

"During that time, he was also an "editor at large" for SmartMoney magazine and was accused of unethically combining his investing and reporting activities when he bought stocks that he recommended just before his recommendation article came out, contributing to a $2 million personal gain.[18] Today, Cramer is barred by CNBC from trading stocks with his personal funds although he makes picks and sells his recommendations."
https://en.wikipedia.org/wiki/Jim_Cramer#Investing

he wasn't adverse to running down stocks he'd shorted. or people he knew had shorted. no time for him at all

nereo

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Re: Jim Cramer recommends 50% CDs for retirement portfolio?!
« Reply #5 on: March 21, 2019, 12:34:08 PM »
Jim Cramer is high on my list of people who ought to be jailed for their actions...

If a medical doctor gave medical advice the way he gives stock 'tips' s/he would immediately lose their license and quite possibly go to jail from the countless number of people who stupidly followed said advice.  But somehow Cramer can claim to be both a 'financial guru' while absolving himself of any responsibility with a two sentence disclaimer at the end of each show.

UnleashHell

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Re: Jim Cramer recommends 50% CDs for retirement portfolio?!
« Reply #6 on: March 21, 2019, 01:29:08 PM »
Jim Cramer is high on my list of people who ought to be jailed for their actions...


hell yes. I think there's an interview out there with Jon Stewart where he admits to deliverable driving down share prices to make money from false rumors.

DadJokes

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Re: Jim Cramer recommends 50% CDs for retirement portfolio?!
« Reply #7 on: March 22, 2019, 03:46:51 PM »
He also said we should sell all stock in Stark Industries.

jojoguy

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Re: Jim Cramer recommends 50% CDs for retirement portfolio?!
« Reply #8 on: March 24, 2019, 03:31:01 AM »
I should have gone to school to become either a meteorologist or an economist. You can be wrong 99% of the time and still make tons of money off of television.

jojoguy

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Re: Jim Cramer recommends 50% CDs for retirement portfolio?!
« Reply #9 on: March 24, 2019, 03:33:33 AM »
He also said we should sell all stock in Stark Industries.

What an idiot! End Game is going to prove buying stock and holding stock in Stark is a wise decision. I bet Cramer is one of Thanos`s minions.

PDXTabs

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Re: Jim Cramer recommends 50% CDs for retirement portfolio?!
« Reply #10 on: March 24, 2019, 03:59:17 PM »
If a medical doctor gave medical advice the way he gives stock 'tips' s/he would immediately lose their license and quite possibly go to jail from the countless number of people who stupidly followed said advice.  But somehow Cramer can claim to be both a 'financial guru' while absolving himself of any responsibility with a two sentence disclaimer at the end of each show.

I feel like you need to be introduced to Dr Phil. I will admit that he doesn't claim to have an MD. But he has a PhD, which means that he should really know better.

nereo

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Re: Jim Cramer recommends 50% CDs for retirement portfolio?!
« Reply #11 on: March 24, 2019, 04:59:22 PM »
If a medical doctor gave medical advice the way he gives stock 'tips' s/he would immediately lose their license and quite possibly go to jail from the countless number of people who stupidly followed said advice.  But somehow Cramer can claim to be both a 'financial guru' while absolving himself of any responsibility with a two sentence disclaimer at the end of each show.

I feel like you need to be introduced to Dr Phil. I will admit that he doesn't claim to have an MD. But he has a PhD, which means that he should really know better.

I'm reminded that before the Motley Fool sold itself, they attempted to 'Moneyball' (e.g. track) the various Buy/Sell recommendations of various financial analysts and talking heads.  IIRC Cramer's actual record was so bad you would have been better off setting a third of your money on fire, then stuffing the rest under your mattress - and this was during a bull market.

ChpBstrd

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Re: Jim Cramer recommends 50% CDs for retirement portfolio?!
« Reply #12 on: March 26, 2019, 03:25:57 PM »
Perhaps TV, talk radio, and most of the internet are like a training ground for losing one's ability to successfully navigate reality.

Everyone I know who consumes a lot of media or social media has made a series of bad life choices. My own wost decisions happened to occur simultaneously with electronic media binges.

DadJokes

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Re: Jim Cramer recommends 50% CDs for retirement portfolio?!
« Reply #13 on: March 27, 2019, 06:49:10 AM »
Perhaps TV, talk radio, and most of the internet are like a training ground for losing one's ability to successfully navigate reality.

Everyone I know who consumes a lot of media or social media has made a series of bad life choices. My own wost decisions happened to occur simultaneously with electronic media binges.

I wonder if there is any research looking at the correlation between media consumption and adverse decision-making. I don't know how you would objectively measure bad decisions, but I bet there would be some correlation.

MustacheAndaHalf

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Re: Jim Cramer recommends 50% CDs for retirement portfolio?!
« Reply #14 on: March 27, 2019, 08:25:33 AM »
Not to introduce any cognitive dissonance (including with my earlier post), but decades ago Jim Cramer was actually a successful hedge fund manager.  He had a record of beating the S&P 500, and left right before the dot-com crash - keeping his record intact.  I sort of wonder what that means, compared to his really poor advice as a TV host.  But maybe it's as simple as catering to a new audience.

nereo

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Re: Jim Cramer recommends 50% CDs for retirement portfolio?!
« Reply #15 on: March 27, 2019, 09:00:09 AM »
Not to introduce any cognitive dissonance (including with my earlier post), but decades ago Jim Cramer was actually a successful hedge fund manager.  He had a record of beating the S&P 500, and left right before the dot-com crash - keeping his record intact.  I sort of wonder what that means, compared to his really poor advice as a TV host.  But maybe it's as simple as catering to a new audience.

I always thought his job as a TV show was primarily entertainment and maximizing viewership, whereas his career as a fund manager was about maximizing shareholder profits.  His "lightning round" of stock picks is the exact opposite of in-depth analysis (gut reaction to news rather than changes to fundamentals).

also worth noting (as someone did above) that he often moved contrary to his own recommendations, possibly intentionally benefiting from these moves.

UnleashHell

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Re: Jim Cramer recommends 50% CDs for retirement portfolio?!
« Reply #16 on: March 27, 2019, 09:11:06 AM »
Not to introduce any cognitive dissonance (including with my earlier post), but decades ago Jim Cramer was actually a successful hedge fund manager.  He had a record of beating the S&P 500, and left right before the dot-com crash - keeping his record intact.  I sort of wonder what that means, compared to his really poor advice as a TV host.  But maybe it's as simple as catering to a new audience.

I always thought his job as a TV show was primarily entertainment and maximizing viewership, whereas his career as a fund manager was about maximizing shareholder profits.  His "lightning round" of stock picks is the exact opposite of in-depth analysis (gut reaction to news rather than changes to fundamentals).

also worth noting (as someone did above) that he often moved contrary to his own recommendations, possibly intentionally benefiting from these moves.

who? Cramer? surely not!!

http://fortune.com/2007/04/09/jim-cramers-if-i-did-it-act/

Blueberries

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Re: Jim Cramer recommends 50% CDs for retirement portfolio?!
« Reply #17 on: March 27, 2019, 04:12:40 PM »
Not to introduce any cognitive dissonance (including with my earlier post), but decades ago Jim Cramer was actually a successful hedge fund manager.  He had a record of beating the S&P 500, and left right before the dot-com crash - keeping his record intact.  I sort of wonder what that means, compared to his really poor advice as a TV host.  But maybe it's as simple as catering to a new audience.

I always thought his job as a TV show was primarily entertainment and maximizing viewership, whereas his career as a fund manager was about maximizing shareholder profits.  His "lightning round" of stock picks is the exact opposite of in-depth analysis (gut reaction to news rather than changes to fundamentals).

also worth noting (as someone did above) that he often moved contrary to his own recommendations, possibly intentionally benefiting from these moves.

This is no different than what analysts, hedge funds, etc. do.  Sure, they don't have their own show, but they don't need it.  They have a communication channel via reports, price changes, etc., they have an understanding of technical analysis, and they have access to large amounts of money, all of which allows them to manipulate the market.  They have no idea what people are doing on the other side of their trade, so it obviously doesn't always work in their favor, but they use these avenues (and others) to manipulate the market.  Since the beginning of the market people have been using all manner of tactics to get easy money.  Cramer is no different.

Admittedly I've never watched Cramer, but I do enjoy the Cramer jab in "The Big Short".  I can't help but feel that he was probably flattered.