The death of "long only" by Jean Jacques Chenier

New York August 31st, 2010 by Jean Jacques Chenier.

Yesterday during its show "Mad Money" Jim Cramer was defending investment in the stock market for the individual and/or small investor.

According to Cramer, over the long term, nothing beats the Stock Market.

This opinion is totally misleading.

First the "long term" to be sure to make money on the Stock Market is 80 years which is pretty long for most of us. There are cycle of about 20 years down or flat markets and 20 years bull markets.

Second, even if you assume that, over the long term you'll get a decent return from the Stock Market, return is not the only metric. The risk has to be taken into consideration. And the risk as expressed by the volatility is just awful.

To be followed.

Jean Jacques Chenier