If you had invested $100 million at the start of 2021 and followed the Inverse Cramer Strategy, you would have $132 million by the beginning of Q4 2022.

Jim Cramer is the host of CNBC’s Mad Money and is among one of the most famous stock pickers in the world. However, his fame doesn’t only arise from his impressive investment recommendations and accurate stock picking.

This article will discuss whether following the inverse Jim Cramer strategy is effective in the long run and whether you should follow this strategy or not. So, let’s get right into it!

What Is the Cramer Effect?

The Cramer effect refers to the phenomenon that whatever Jim Cramer predicts, the opposite happens.

For example, if Cramer expects that the prices of a stock will go up, you can assume that the stock will fall and vice versa.

Jim Cramer has notoriously made some awful stock predictions. Some of Cramers worst predictions throughout the years have been:

In November 2012, Cramer banged the table and called out a sell notice for Netflix, predicting a steep fall in its value. Within the next six months, the value of Netflix rose 174.49% higher.

Netflix (NASDAQ: NFLX)

Cramer told his listeners to sell their HPE stock in 2012, stating that the company would struggle due to “broken corporate culture.” The stock of HPE rose by 110% in the six months following his sell notice.

Hewlett Packard Enterprise Co (NYSE: HPE)

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