The owner of Twitter and one of the richest men on the planet - Elon Musk - posted a sarcastic tweet about Jim Cramer's latest market forecast.
The host of CNBC's "Mad Money" financial TV show has offered investors guidance on several occasions, often with the wrong advice. A few days ago, he argued that people should use the recent rise in cryptocurrency prices as an opportunity to sell their stashes. However, the market maintained its uptrend, with Bitcoin hitting a new nine-month high of $27,000 earlier today. In a recent Twitter thread, memecoin Dogecoin co-founder Billy Markus, better known as Shibetoshi Nakamoto, said that Cramer is “good at what he does.” His comments sparked a debate that was joined by Elon Musk.
Ironically, the South African entrepreneur backed the "Inverse Cramer" strategy a scheme that helps investors bet on the "Mad Money" host's stock picks. The Inverse Cramer Tracker ETF (ticker SJIM ) was designed to do the opposite of what a TV personality would suggest. Matthew Tuttle – CEO of Tuttle Capital Management – explains in detail:
“If he specifically says buy, buy, buy a stock, then we’ll short that stock the next actual moment. If he tells you he hates a stock or sell, sell, sell or something like that, then we Will be long the stock again at the next practical entry point."
Some cryptocurrency players have recently claimed that bearishing Cramer may be an appropriate investment strategy, as his predictions about the future performance of digital currencies such as Bitcoin are not very accurate. Cramer suggested in early 2022 that the correction in Bitcoin and Ethereum could be over, hinting at the start of a cryptocurrency bull market. However, last year was a devastating one for the industry, seeing the collapse of several giants including FTX, Celsius Network, Three Arrows Capital (3AC), and others.
Negative events, broad macroeconomic crises, and other factors have adversely affected most digital assets, with BTC plummeting 65%. The American, a former cryptocurrency proponent, advises investors to sell their “bad” positions in December 2022: “You can’t beat yourself up and say, ‘Hey, it’s too late to sell.’ The truth is, it’s never too late to sell a bad position, and if you own these so-called digital assets, that’s what you have”
At the time, Bitcoin was hovering around $17,000, and currently, it sits above $26,000 (a gain of more than 50%).
Notably, Cramer told investors to buy shares of Silicon Valley Bank (SVB) in early February of this year. Recall that the financial institution had exposed operational difficulties, prompting regulators to shut it down a month after receiving the advice.
