Does Jim Cramer dole out stock tips for suckers? Three Northwestern University students say yes. On his Channel Island blog, Scott Collins quotes the academic report:
“Cramer pushes up prices about 5% overnight for the smallest stocks and about 2% overnight for our entire sample. However, the entire run-up in price (including the run-up due to information leakage) completely reverses within several trading days (i.e. stocks, on average, fall to their original prices).”
On the other hand, CNBC has noted “several serious flaws” with the report, and one could argue that “Cramer is recommending stocks for the long term.” Here’s the full story…
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