Twitter’s owner and one of the richest people on the planet – Elon Musk – dropped a sarcastic tweet about Jim Cramer’s latest market predictions.
The host of CNBC’s financial television show – “Mad Money” – has given guidance to investors numerous times, but often that advice has gone wrong. A few days ago, he argued that people should use the recent crypto price increase as an opportunity to sell their stash. However, the market maintained its upward trend, with bitcoin hitting a new 9-month high of $27,000 earlier today.
The ‘Inverse Cramer’ ETF seems to be working
In a recent Twitter post, The co-creator of memecoin Dogecoin – Billy Markus (better known as Shibetoshi Nakamoto) – said that Cramer is “good at his job.” His comment started a debate, and one of the people who participated was Elon Musk.
The South African entrepreneur ironically endorsed the “Inverse Cramer” strategy — a plan that helps investors bet against the stock picks of the “Mad Money” host.
The Inverse Cramer Tracker ETF (ticker SJIM) was designed to work in the opposite direction of the TV personality’s advice. Matthew Tuttle – CEO of Tuttle Capital Management – explained in details:
“If he specifically says either buy, buy, buy a stock, then we’ll map that stock at the next practical moment. If he tells you he hates a stock or sell, sell, sell or something like that, then we’ll go ahead with that name again at the next form of practical entry.”
Some cryptocurrency participants have recently argued that betting against Cramer could be an appropriate investment strategy, as his predictions about the future performance of digital currencies such as bitcoin have not been entirely accurate.
Examples of his failures
Cramer suggested in early 2022 that the bitcoin and ether correction could be over, suggesting the start of a cryptocurrency bull run. However, last year was devastating for the industry and saw the demise of several giants including FTX, Celsius Network, Three Arrows Capital (3AC) and more.
The negative events, the broad macroeconomic crisis and other factors had a negative effect on most digital assets, with BTC falling by 65%.
The American who once advocated cryptocurrencies, advised investors to sell their “terrible” positions in December 2022:
“You can’t just beat yourself up and say, ‘hey, it’s too late to sell.’ The truth is, it’s never too late to sell a terrible position, and that’s what you have if you own these so-called digital assets.”
Back then, bitcoin was hovering around $17K, while it is currently above the $26K mark (over 50% increase).
It is worth noting that Cramer told investors to buy Silicon Valley Bank (SVB) shares in early February this year. Keep in mind that the financial institution revealed operational difficulties, prompting regulators to shut it down a month after this advisory.