Olav23 said:
Jim Cramer on how hedge funds manipulate markets (specifically how he did it in the past!).
My favorite quote: "all the moron longs..."
His "jibber-jabber" is always very confusing to me. He might as well be speaking Hebrew. So, he's spending $5-10 mill. to manipulate a stock price? All so it looks good at quarter-end? Am I deciphering this correctly? Doesn't make sense if he's actually doing it to make money. i.e. driving the stock price down, so he can buy cheap... it's gonna cost money, on the way down, and then the price is going to go back up when/if he starts buying. I guess if he can get everyone else to sell, then he can buy cheaper, and make money, or if he's "short", but whatever... seems like the inefficiencies would kill ya.
I'm sure I'm missing some detail here.
Or is he doing all this to make 1% on a million "big $ number" or something?
But, back to your original point -- yeah, INDEX!
-CC
Edit: If he was/is so good, why isn't he still running a fund? Or, is he? Personally, I think he's nuts. Another one of my conspiracy theories is that he buys a ton of stock, pumps it up on his show, and then sells it.