Institutional traders are shorting Cramers picks, according to this study.
"Taken together, our results suggest that the aggregate losers in
our event study are the Mad Money viewers who decide to buy the
recommended securities when the markets open the following day, and that
the winners are the market makers and arbitraguers [sic] who sell the
overpriced recommended stocks on day 1, as well as the traders who sell
the recommended stocks on days 2 through 12.
Individual investors who watch Mad Money would be wise to wait
before purchasing the small stocks Cramer recommends, as these stocks
tend to fall to their original levels following the overnight price
spike caused by his recommendation."
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