What Wall Street Misread

Get Jim Cramer's picks for 2006.

Another year didn't turn out like you planned? You're not alone.

On Wall Street, where conventional wisdom trades like currency and lasts half as long, 2005 made a fool of the crowd. Never mind the professional soothsayer class, which bungled calls on everything from Google(GOOG Quote) to oil. In 2005, even rational people were forced to sit dumbfounded as hucksters got religion, champions fell and Martha Stewart suddenly seemed boring.

Here are the top five Wall Street story lines from 2005 that took unexpected twists.

The Year of Martha

After atoning for her crimes in prison, Martha Stewart was supposed to see her star power rehabilitated in 2005. It didn't happen.

This time last year, shares of Martha Stewart Living(MSO Quote) reflected congealing optimism. After falling to $10 on the day of her May 2004 conviction, they bounced above $30 last December as investors looked forward to the domestic diva's release and the millions of dollars of free publicity it would receive.

Adding to the euphoria was news that reality-TV master producer Mark Burnett was in Stewart's corner. In addition to a new daytime show he intended to syndicate, Burnett announced plans to have Stewart star in her own version of The Apprentice, the nighttime reality show that made Donald Trump into a TV star. The stock rose to $36 in the weeks before her release from prison in March.

But the public can be fickle. While Stewart still has a loyal fan following, she's not the force she used to be. Her version of The Apprentice was so badly received that NBC decided not to order any new shows after the current series ends in December.

A new book published by Stewart in October, The Martha Rules: 10 Essentials for Achieving Success as You Start, Grow, or Manage a Business, hasn't been a blockbuster. By contrast, Rachael Ray, the Food Network's younger alternative to Stewart, had two bestsellers this year, according to Barnes & Noble.