Whether it’s television, radio, newspapers or a magazine, you likely come into contact with some form of mainstream investment commentator on a regular basis. In our present day Jim Cramer of CNBC is the most well known investment commentator. He has a nightly show and writes for his website, www.TheStreet.com. Since Cramer is the biggest dot on the radar screen, I’ll use him to convey my point regarding how to use mainstream commentary to come up with your own investment ideas.
Cramer is often picked on by other commentators and other people in general. It’s either his style, track record or a combination of both that are at the root of their disdain. I don’t take part in such bashing because I don’t expect Cramer to be the key to my investment dreams. The man has a show he does during the weeknights in which people expect him to throw out a variety of buy or sell calls on a number of stocks. Anyone operating under such circumstances is going to be prone to constant failure.
You cannot depend on someone that is forced to constantly throw out stock ideas for the sake of ratings to guide your portfolio to the promised land. Think about this…Do you think Cramer invests like he runs his 1/2 program? Throwing out stocks and seeing what sticks? I doubt it.
Whether it’s Cramer’s show or some other regular stock recommendation installment, you need to first sit back and relax. We’re not at a horse race. The information provided does not need to be acted upon NOW. No one is forcing you to rush. There are many stocks in the sea.
What you should do is remember those ideas (trends) and/or specific stocks that were mentioned. What sounded good to you? What sounded promising? Based on that information go out and look around for more information. As you’re looking around related ideas/stocks may show themselves.
My point is that you should use commentators as a spring-board to other investing ideas. When you hear BUY X STOCK! Don’t stop with X. What’s the rational behind the recommendation? What other areas are positioned to prosper if this X stock is really a smart buy? The market, like the economy and everything else in life, is an interconnected web. No company stands alone.
Don’t fixate on catching wind of the next big stock from your favorite commentator. Instead focus on identifying general ideas/themes that can help you on your own path to finding where you need to be to thrive.