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He appears to significantly outperform the market if you only hold for 1 day. We need someone to create an ETF that does this and we can all join the fun.
by thedigitalone 5y ago
He appears to significantly outperform the market if you only hold for 1 day. We need someone to create an ETF that does this and we can all join the fun.
- bhk 5y ago> On average, the Buy and Positive mention stocks went up by 0.03 and 0.05% respectively You would get eaten alive by transaction costs, the bid/ask spread, and, if trading in large quantities, the market's response to your buy & sell orders.
- blantonl 5y agoThe more people know about your secret sauce, the less tasty the sauce becomes. This almost reminds me of the typical /r/WSB stuff that "literally can't go tits-up"
- cecilpl2 5y agoOn average the S&P increases by 10% annually. Across 250 trading days, it increases by 0.04% daily on average. So his picks do not beat the market on average.
- vannevar 5y agoYou're right, that seems to contradict the author's assertion that Cramer's 1-day performance beats the S&P 500 by a factor of ten. Maybe he made a simple math error somewhere---forgetting to adjust the daily SPY return by 10x when converting the units to a percentage, perhaps? Multiplying the stated .003% daily return by 250 yields .75% annual return, which seems wrong. Pretty sure the average annual S&P return from 2016-2021 was higher than that. Investopedia says the annual return is around 10% since 1957.
- jacobr1 5y agoOutlier returns. A few picks give you a 1000x return that overweights the entire portfolio strategy.
- vannevar 5y agoThat doesn't explain why the 1-day SPY Buy row is 10x the 1-day SPY Positive Mention row---they should be about the same, as they are in the other rows, since they're essentially random samples over the timeframe.