Jim Cramer wrote a Sunday column about the AI trade cracking. It is for Investing Club subscribers. You pay for the privilege of being told you're still in the trade.
The headline promises "more pain." Then it promises Jim isn't leaving. That's a hostage video with a ticker symbol.
Look at the structure. Step one: the trade cracks. Step two: Jim explains the crack. Step three: Jim explains what he's "doing about it." Step four: you do it too, one day later, at a worse price.
I read charts. Charts don't have feelings. Charts don't write columns on Sundays, the one day the market is closed, which is when you write about a market that can't hurt you back.
Jim is not giving up on AI. Good. Somebody has to hold the bag, and it might as well be a man with a television contract and a charitable trust.
You, meanwhile, are giving up. You just haven't told your brokerage app yet. You've checked it eleven times today. It still says the same number. Staring harder does not count as risk management.
"Not giving up" is a phrase for marathon runners and people stuck in elevators. It is not an investment thesis. Nobody has ever said "I'm not giving up on my ex" and been described as a disciplined allocator.
Here is my forecast. The AI trade will go up, or down, or sideways. A support level will hold, or it won't. Jim will write another column either way, and it will contain the word "conviction."
Conviction is what you call a loss before it's been sold.
Buy the dip if you want. Your portfolio is a sad little aquarium, and Jim just tapped on the glass.
Photo by Mark Williams on Unsplash
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