Induced Cramer Skittishness

Kevin McElroy of Resource Prospector, a contrarian like many goldbugs are, doesn't like to be on the same side of the trade as Jim Cramer. Last night, Cramer recommended going into gold. That got McElroy antsy.

Is he wrong to tell his viewers to buy gold? Not necessarily. I’m still long-term bullish on gold as a way to protect wealth against inflationary policies of the world’s central bankers and spendthrift politicians.

But his timing couldn’t be much worse. Gold is trading near its all time highs. I don’t watch his show, but I’m wondering if he has a tendency just to tell people to buy investments when they’re at their highest, simply because he knows people are probably already excited about the idea....

McElroy recommends waiting for the dip to buy in.


Jim Cramer is easy to criticize in investment circles because he's combined advice-giving with entertaining. One of the tragedies of Wall Street is that an investment becomes most popular when it's topping, and many bargains are yawners. Hence the skittishness towards showmanship amongst old-style investment pros.