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> 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, an
by 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.