Paul Murray's weblog, with news you may have missed and my $0.02 worth on a number of topics.

"You can't make up anything anymore. The world itself is a satire. All you're doing is recording it."
- Art Buchwald

I bet you don't have a friend who's an acupuncturist

E-mail me: pmurray [at] despammed.com

Oh, those hot tips. I hope you weren't investing based upon Jim Cramer's recommendations on his CNBC Mad Money show. Barron's explains:

Cramer, by all accounts, had a stellar career as a hedge-fund manager. And he is held out by CNBC as the guy who can help viewers make big money. But a comprehensive and careful review of his stock picks by Barron's finds that his picks haven't beaten the market. Over the past two years, viewers holding Cramer's stocks would be up 12% while the Dow rose 22% and the S&P 500 16%, according to a record of 1,300 of the CNBC star's Buy recommendations compiled by YourMoneyWatch.com, a Website 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 Website, 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.

When we asked Cramer and CNBC for their own records of Mad Money's stock-picking performance, they had more excuses than a Tour de France cyclist dodging a blood test....

This is not so much about picking on Jim Cramer as it is a reminder to view all stock tips with caution. To their credit, SmartMoney magazine revisits all of their stock suggestions on a regular basis to check their performance.

Labels: investing, media

posted by Paul Murray at 11:11 PM | permanent link |

Ouch. So ... did all the people rushing to invest in hedge funds ever consider this possibility?

Investors in two troubled Bear Stearns Cos. hedge funds that made big bets on subprime mortgages have been practically wiped out, the Wall Street firm said yesterday, in more evidence of the turmoil in this corner of the bond market.

Bear said one of its funds was worth nothing and another worth less than a 10th of its value from a few months ago after its subprime trades went bad, according to a letter Bear circulated and to people briefed by the firm. The Wall Street investment bank -- known for its bond-trading savvy -- has had to put up $1.6 billion in rescue financing.

Labels: hedge funds, investing

posted by Paul Murray at 12:04 AM | permanent link |