Jim Cramer,the Bombastic,high-energy investment Guru and host of CNBC’s massively successful show “Mad Money”,gave Mexico real estate investment a big boost this week. Cramer told his audience:
“It's not such a bad idea to diversify away from stocks,I think that out of favor real estate in Mexico,that's easily accessible to Americans,represents a great buy”.
With as many as 2.5 million investors viewing the show each week,the controversial host wields quite a bit of influence among his viewership and in the marketplace as a whole. His following is so intense that it has created a unique phenomenon in the stock market known as the “Cramer Bounce”,which can be best described “as the sudden overnight appreciation of a stock’s price after it has been recommended by Jim Cramer on his CNBC show”,“Mad Money”.
Why does Cramer have such clout? Well,after graduating magna cum laude from Harvard College,his first year as a rookie broker with Goldman Sachs,he made over $700,000. After he paid his dues at Goldman,Cramer started his own $450 million hedge fund where he earned 24% after fees,regularly taking home over $10 million a year. Cramer’s fund finished in 2001,up 36%,compared to -11% for the S&P 500 average and walked away with $100 million and change.
Since then,he founded TheStreet.com and has written five New York Times best selling books and his articles are featured in Time and New York Magazines. He also a frequent guest on Meet the Press,Today Show,60 Minutes,NBC’s Nightly News,The Tonight Show and most major financial networks.
Following his own advice,Cramer recently announced to his audience that he had already purchased three properties in Mexico within the last few weeks. When asked about hyped headlines about drug violence and turmoil in Mexico,Cramer downplayed those fears,he said, "Mexico is a big country and not every province,every state is involved in the drug trade”,and he added,“it has to be one of the nicest places I've ever been."
When asked why he invested money in Mexico real estate,he replied,There is “no property tax,” the properties are “incredibly easy to maintain,” and there are “property managers everywhere.”