Elon Musk Mocks Jim Cramer’s Market Advice

Twitter’s own­er and one of the wealth­i­est peo­ple on the plan­et – Elon Musk – dropped a sar­cas­tic tweet regard­ing Jim Cramer’s recent mar­ket predictions. 

The host of CNBC’s finan­cial TV show – “Mad Mon­ey” – has giv­en guid­ance to investors numer­ous times, but often that advice has turned wrong. A few days ago, he argued that peo­ple should use the recent cryp­to price ral­ly as an oppor­tu­ni­ty to sell their stash. How­ev­er, the mar­ket kept its uptrend, with bit­coin tap­ping a new 9‑month high at $27,000 ear­li­er today.

‘Inverse Cramer’ ETF Seems to be Working

In a recent Twit­ter post, the Co-Cre­ator of the meme­coin Doge­coin – Bil­ly Markus (bet­ter known as Shi­betoshi Nakamo­to) – said Cramer is “good at his job.” His com­ment start­ed a debate, and one of the peo­ple to join was Elon Musk.

The South African entre­pre­neur iron­i­cal­ly sup­port­ed the “Inverse Cramer” strat­e­gy – a plan that helps investors bet against the stock picks of “Mad Money’s” host. 

The Force is strong with inverse Cramer

— Elon Musk (@elonmusk) March 16, 2023

The Inverse Cramer Track­er ETF (tick­er SJIM) was designed to per­form in the oppo­site direc­tion of the TV personality’s advice. Matthew Tut­tle – CEO of Tut­tle Cap­i­tal Man­age­ment – explained in detail:

“If he specif­i­cal­ly says either buy, buy, buy a stock, then we’re gonna go short that stock at the next prac­ti­cal moment. If he tells you he hates a stock or sell, sell, sell or some­thing like that, then we’re gonna go long that name again at the next kind of prac­ti­cal entry point.”

Some cryp­tocur­ren­cy par­tic­i­pants have recent­ly claimed that bet­ting against Cramer could be an appro­pri­ate invest­ment strat­e­gy since his pre­dic­tions on the future per­for­mance of dig­i­tal cur­ren­cies, such as bit­coin, have not been quite precise.

Examples of his Failures

Cramer sug­gest­ed at the begin­ning of 2022 that the cor­rec­tion of bit­coin and ether could be over, hint­ing at the start of a cryp­tocur­ren­cy bull run. How­ev­er, last year was dev­as­tat­ing for the indus­try and saw the demise of sev­er­al giants, includ­ing FTX, Cel­sius Net­work, Three Arrows Cap­i­tal (3AC), and more.

The neg­a­tive events, the broad macro­eco­nom­ic cri­sis, and oth­er fac­tors had an adverse effect on most dig­i­tal assets, with BTC plung­ing by 65%.

The Amer­i­can, who was once a pro­po­nent of cryp­tocur­ren­cies, advised investors to sell their “awful” posi­tions in Decem­ber 2022:

“You can’t just beat your­self up and say, ‘hey, it’s too late to sell.’ The truth is, it’s nev­er too late to sell an awful posi­tion, and that’s what you have if you own these so-called dig­i­tal assets.”

Back then, bit­coin was hov­er­ing around $17K, while cur­rent­ly, it sits above the $26K mark (over 50% increase).

It is worth not­ing that Cramer told investors to buy Sil­i­con Val­ley Bank (SVB) shares at the begin­ning of Feb­ru­ary this year. Recall that the finan­cial insti­tu­tion revealed oper­a­tional dif­fi­cul­ties, prompt­ing reg­u­la­tors to close it down a month after that advice.