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Cramer exposes the ugly truth about how top callers damage your wealth

Abigail Stevenson

Jim Cramer envies the rich hedge fund managers that have the audacity to call a top in the market. They never need to be right because the worst case scenario is that they are early.

"Top calling, like loving, means never having to say you're sorry," the "Mad Money" host said.

Somehow the top-caller's position or performance never are discussed when they are calling a top. After all, that would be rude for Cramer to say: "I see this is your fifth top call during a period when the Dow Jones Average has gone from 18,000 to 20,000 … and I have read your investment letters for years and you have repeatedly said the market is dangerous and you were underexposed to the market each time, so are you still underexposed, or short?"

But that is exactly what Cramer thinks is the right thing to do.

Watch the full segment here:

The level of accountability is so rarely on display when it comes to interviewing famous hedge fund managers. Some of the most well-known managers have hated the market for ages and sat on the sidelines or bet against the market because they have made so much money being right in another portion of their career.

Their past track record has somehow earned them immunity to calling a top.

If Cramer were interviewing these people, he would hold them accountable simply by quoting their admonitions from previous occasions when the market was substantially lower and ask why they got it wrong back then and could they potentially be wrong now.

Cramer doesn't care if the hedge fund manager gets mad at him or threatens him for bringing up missed calls.

"I don't care because I know that many people who are listening and watching are going to take action. They are going to sell shares in good companies that don't need to be sold because they trust these managers and don't' know their records or when they called their last top," Cramer said.

Home gamers would be a lot less likely to sell if they knew all the facts, Cramer said.

Many of the top-callers don't even trade individual stocks. They trade S&P 500 futures. Their comments could scare people out of particular stocks of companies that are doing well, but they rarely have any selectivity. They always seem to hate the "market."

"Top-calling means never having to say you're sorry for freaking people out of the best companies money can buy," Cramer said.

Instead, Cramer would rather see an investor sell stocks for well-stated reasons that have solid evidence that were due to pull back.

In the end, what matters to Cramer is that top-callers only hurt investors' chances to get wealthier. The real question is if they will ever be forced to own up to calling a top, because in the end, they are never wrong. They are just early.

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