Daily Investment Tips

Jim Cramer is the poster boy for stock pickers. The man has a tendency of leaning toward bullishness even when the market indicators show danger ahead.

Jim Cramer is a household name across US Thanks to his daily CNBC show “Mad Money,” Hundred of viewers tune in to his weeknights for his stock predictions, stock forecast and stock picks.

With such a large following I was interested to know his track record in picking stocks. Have investors made money by following his stock picks?

Jim Cramer Historical Track Record in Stock Picking.

According to analysis done by Barron back in 2007. If you had followed Jim Cramer stock picks between 2005 – 2007 you would have lost money.

Over the past two years, viewers holding Cramer’s stocks would be up 12% while the Dow rose 22% and the Standard & Poor’s 500 Index gained 16%, according to a record of 1,300 of the CNBC star’s “buy” recommendations compiled by YourMoneyWatch, a Web site run by a retired stock analyst and loyal Cramer-watcher.

We also looked at a database of Cramer’s “Mad Money” picks maintained by his Web site, TheStreet.com. It covers only the past six months but includes an astounding 3,458 stocks -– “buys” mainly, punctuated by some “sells.” These picks were flat to down in relation to the market. Count commissions and you would have been much better off in an index fund that simply tracks the market.

As Cramer warns in his website, Always do your own research as these are recommendations and I make no guarantees. No one cares about your money more than you do!

For more details on Barron Analysis, read the full article at moneycentral

written by Constantine Njeru \\ tags: Barron, Buy Recommendations, Cnbc, Commissions, Dow, Guarantees, Household Name, Index Fund, Jim Cramer, Mad Money, Market Indicators, Picking Stocks, Poster Boy, S 500, Stock Analyst, Stock Pickers, Stock Picking, Stock Picks, Stock Predictions, Thestreet Com

James C. Boogle is the founder of The Vanguard group,  a mutual fund that allows retail investors invest in the movement of S & P 500. The fund owns 500 stocks — all the companies that are included in the index.

James C. Boogle is a champion of investing in index funds. He believes index funds have three advantages over the traditional mutual funds.

The Advantages of Investing in Index fund.

Low Cost fees – Vanguard funds don’t charge commission fees to buy into the fund

Higher return to investor – Vanguard funds don’t hire expensive stock analysts, don’t rapidly move in and out of position. This saves on operational cost. The money saved is moved that is distributed to investors as gains.

Stable Return. Vanguard fund never claims to beat the index. The returns are average but stable.

written by Constantine Njeru \\ tags: Amp, Boogle, Champion, Index Fund, Index Funds, Investment Tips, Investor, James C, Money, Mutual Fund, Operational Cost, Retail Investors, Stock Analysts, Stocks, Traditional Mutual Funds, Vanguard Fund, Vanguard Funds, Vanguard Group

The Vanguard group is a mutual fund that allows retail investors invest in the movement of S & P 500.The fund owns 500 stocks — all the companies that are included in the index.

If you are interested in investing in Vanguard fund and you may be interested to know its advantages.

The Advantage of Investing in Index fund.

Low Cost fees – Vanguard funds don’t charge commission fees to buy into the fund

Higher return to investor – Vanguard funds don’t hire expensive stock analysts, don’t rapidly move in and out of position. This saves on operational cost. The money saved is moved that is distributed to investors as gains.

Stable Return. Vanguard fund never claims to beat the index. The returns are average but stable.

written by Constantine Njeru \\ tags: Amp, Fund Investment, Index Fund, Investing, Investment Group, Investment Tips, Investor, Money, Mutual Fund, Operational Cost, Retail Investors, Stock Analysts, Stocks, Vanguard Fund, Vanguard Funds, Vanguard Group, Vanguard Investment