Questions That Need Answers
It’s no wonder that you are confused. The financial media inundates investors every day with a barrage of irrelevant — and often misleading — information. You might think every conceivable question about investing has been fully explored by now and that the answers to the majority of inquiries would be obvious. Not true. Here are some important questions that still need answers.
1. Why doesn’t Jim Cramer post his stock-picking track record?
The bombastic Jim Cramer is not shy about making stock recommendations. Investors might infer that he, or some other market “guru,” has a special ability to identify mispriced equities. However, I have seen no evidence that his track record is any better than the investment advice you would get from tossing a coin. One study of 62 forecasts from 2005 to 2012 gave him an accuracy rate of 46.8 percent, which is less than you would expect from random chance.
Read the rest of the article at The Huffington Post.
