When it comes to investing, everyone makes mistakes.  But, when you run a show that is completely focused on helping the average investor navigate the complex investing market, mistakes are often enhanced.  Jim Cramer of Mad Money told investors that a recent small business index indicating a growth in confidence for small business owners would not have any affect on stocks.

How wrong he was.

I by no means have as much experience in regards to stock investments as the seasoned Cramer, however insinuating that small businesses which represent the largest employers in our country, will have zero affect on stocks was just plain stupid.  Small businesses are important to America.  As they grow and expand they are able to hire and pay more people, thus increasing the overall income of Americans.  They are able to do so at a higher rate than most large corporations accounting for a large portion of the population.

As more people become employed, more money can flow through our economy.  That means corporations will be looking to tap into that additional income very soon.  And with expected income, that means expected profits.

Expected profits = stock increase.

And Mr Cramer completely missed the boat on this one.  But no worries, we all make mistakes.


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