Twitter’s owner and one of the wealthiest people on the planet – Elon Musk – dropped a sarcastic tweet regarding Jim Cramer’s recent market predictions.
The host of CNBC’s financial TV show – “Mad Money” – has been given guidance to investors numerous times, but often that advice has turned wrong. A few days ago, he argued that people should use the recent crypto price rally as an opportunity to sell their stash. However, the market kept its uptrend, with bitcoin tapping a new 9-month high at $27,000 earlier today.
‘Inverse Cramer’ ETF Seems to be Working
In a recent Twitter post, the Co-Creator of the memecoin Dogecoin – Billy Markus (better known as Shibetoshi Nakamoto) – said Cramer is “good at his job.” His comment started a debate, and one of the people to join was Elon Musk.
The South African entrepreneur ironically supported the “Inverse Cramer” strategy – a plan that helps investors bet against the stock picks of “Mad Money’s” host.
The Force is strong with inverse Cramer
— Elon Musk (@elonmusk) March 16, 2023
The Inverse Cramer Tracker ETF (ticker SJIM) was designed to perform in the opposite direction of the TV personality’s advice. Matthew Tuttle – CEO of Tuttle Capital Management – explained detail:
“If he specifically says either buy, buy, buy a stock, then we’re gonna go short 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’re gonna go long that name again at the next kind of practical entry point.”
Some cryptocurrency participants have recently claimed that betting against Cramer could be an appropriate investment strategy since his predictions on the future performance of digital currencies, such as bitcoin, have not been quite precise.
Examples of his failures
Cramer suggested at the beginning of 2022 that the correction of bitcoin and ether could be over, hinting at the start of a cryptocurrency bull run. However, last year was devastating for the industry and saw the demise of several giants, including FTXCelsius Network, Three Arrows Capital (3AC)and more.
The negative events, the broad macroeconomic crisis, and other factors had an adverse effect on most digital assets, with BTC plunging by 65%.
The American, who was once a proponent of cryptocurrencies, advised investors to sell their “awful” 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 an awful position, and that’s what you have if you own these so-called digital assets.”
Back then, bitcoin was hovering around $17K, while currently, it sits above the $26K mark (over 50% increase).
It’s worth noting that Cramer told investors to buy Silicon Valley Bank (SVB) shares at the beginning of February this year. Recall that the financial institution revealed operational difficulties, prompting regulators to close it down a month after that advice.
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