Summary
- Jim Cramer has once again voiced his dislike for digital assets.
- His comments come after Paul Tudor Jones said he would increase his holdings in gold and Bitcoin.
- Inverse Cramer” has become a popular meme, but its accuracy is inconsistent.
Jim Cramer has taken another swipe at Bitcoin (BTC). Speaking on CNBC’s ‘Squawk on the Street,’ he stated he can’t see any value in either gold or Bitcoin.
He said,
I can’t go out with gold because gold’s not good. I can’t go out with Bitcoin because I just can’t get on the… I can’t be in something where Mr. Bitcoin is about to go down big.
Jim CramerBillionaire Hedge Fund Investor Disagrees
Cramer’s comments came after billionaire hedge fund investor Paul Tudor Jones reaffirmed in an interview with CNBC that he is likely to increase his holdings in Bitcoin and gold. He claimed that there are approximately US $40 billion ($62 billion) left to invest in these assets.
The billionaire cited macroeconomic headwinds, including the current geopolitical situation and an expected recession as reasons for his views.
That’s why he likes risk-off assets like Bitcoin and gold, adding, “I would love gold and bitcoin together. I think they probably take on a larger percentage of your portfolio than they would historically.”
Cramer Just Doesn’t Like Crypto?
While the former hedge fund manager has publicly expressed his dislike for crypto on many occasions, Cramer denied this sentiment in June. He claimed he had done well with crypto and it was merely the scams in the industry he disliked.
Nevertheless, Cramer has made several social media posts and television appearances where he voiced his dislike for crypto, often citing the lack of use cases. At times, he even predicted a crypto crash and advised people to exit the market while they still could.
The Inverse Cramer Phenomenon
Cramer has a history of making predictions that sometimes contradict the market’s actual performance. He has called for market crashes when they rallied and predicted strong performance for stocks that ultimately nosedived.
This trend has led to the coining of the term “Inverse Cramer.” According to this theory, whatever Jim Cramer recommends tends to perform poorly, and vice versa.
However, this is not limited to crypto. In fact, there is even an exchange-traded fund (ETF) called “Inverse Cramer Tracker ETF,” which allocates a minimum of 80% of its assets to securities mentioned by the television personality.
Matthew Tuttle, the CEO of Tuttle Capital Management, which advises the fund’s portfolio, stated,
If Cramer specifically says either buy, buy, buy a stock. 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.
Matthew TuttleWhile it is popular to bet against the CNBC anchor, there is mixed evidence as to whether the Inverse Cramer theory checks out. As for the Inverse Cramer ETF, its performance has been less than stellar since its inception, with a return of -5.56% as of October 2023.
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