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Building the Inverse Jim Cramer Index

60 pointsby vampiretooth1about 3 years ago

7 comments

ProjectArcturisabout 3 years ago
So, they tried a whole bunch of things, and even with the benefit of that lookforward bias, their final strategy still underperformed the S&amp;P? Color me unimpressed.<p>Edit: I looked at their site and it&#x27;s clear that their business model is just to gather assets to charge fees on. Which is why they&#x27;ve developed strategies like Inverse Cramer, Pelosi Tracker, WallStreetBets -- these strategies don&#x27;t have any alpha, they&#x27;re just designed to catch the eye of retail traders.<p>Also this scumbaggery, from their website:<p>&quot;$70M+ Assets Committed*&quot;<p>Then way at the bottom:<p>&quot;* = &quot;Assets committed&quot; refers to captured user behavior in attempted investments and not to assets being actively managed.&quot;
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calderwoodraabout 3 years ago
Is there any reason to believe that Jim Cramer (or the inverse of Jim Cramer) would do particularly well in the stock market?<p>I imagine following a cat picking random stocks works about as well. <a href="https:&#x2F;&#x2F;www.npr.org&#x2F;sections&#x2F;money&#x2F;2013&#x2F;01&#x2F;14&#x2F;169326326&#x2F;housecat-beats-investors-in-stock-market-challenge" rel="nofollow">https:&#x2F;&#x2F;www.npr.org&#x2F;sections&#x2F;money&#x2F;2013&#x2F;01&#x2F;14&#x2F;169326326&#x2F;hous...</a>
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pavlovabout 3 years ago
For taking a position against another growth stock hype luminary, there exists an inverse Cathie Wood index you can trade: an ETF with the ticker SARK (“short ARK”). It has done quite well since its inception last year.
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robonerdabout 3 years ago
But what happens when Jim Cramer starts promoting the Inverse Jim Cramer Index?
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chiiabout 3 years ago
The idea of an inverse cramer index assumes that cramer is always telling the &quot;wrong&quot; thing - that is, his predictions are inversely correlated with the truth (or outcome).<p>That&#x27;s not what cramer&#x27;s predictions are though - his predictions are likely not far off from a random flip of the coin. So an inverse is likely to perform just as well (or poorly) as the real prediction!
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leobgabout 3 years ago
My tongue-in-cheek heuristic for the last couple of years has actually been the Inverse Gates Index.
tjs8rjabout 3 years ago
Very interesting and Quantbase looks neat (as well as the other investing strategies you link to: Pelosi Tracker, leveraged long run investing, etc).<p>Is there a case for this as an actual investment or primarily novelty?
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