Jim Cramer told people which stocks to buy. Again. The man has been doing this for twenty years. The track record exists. People keep listening.
He calls it a market rotation. That's the term professionals use when their previous picks are bleeding and they need you to forget about those while they pitch new ones. It's not a mistake. It's a rotation. The wheel turns. Your money leaves.
Five stocks this time. High-quality companies, he says. Every stock he recommends is high-quality right up until the earnings miss. Then it was a value trap. Then it was sector-specific headwinds. Then it was macro uncertainty. Never his fault. Always the market's fault for not recognizing genius.
The beautiful part is the word opportunity. Market goes up, it's an opportunity to buy. Market goes down, it's an opportunity to buy. Market moves sideways, believe it or not, also an opportunity to buy. The only thing that's never an opportunity is holding cash and waiting for an actual technical setup. That would require patience. That would require not giving CNBC a reason to sell ad inventory during market hours.
Retail traders will buy all five. They'll do it in a taxable account with no position sizing. They'll hold through the next rotation when Cramer says to sell these and buy five different ones. Then they'll hold through the rotation after that. Eventually they'll be holding fifteen stocks they don't understand with a cost basis they can't remember and a portfolio that tracks the S&P 500 but with worse performance because they paid commissions and spread on every trade.
The technical setup doesn't matter. The fundamentals don't matter. The only thing that matters is Jim Cramer had six minutes of airtime to fill and five companies had tickers short enough to fit on the chyron.
Photo by Maxim Hopman on Unsplash
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