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https://markets.businessinsider.com/news/stocks/sp-500-record-high-pandemic-economic-fallout-jim-cramer-2020-8-1029516682

The S&P 500's record high is a 'tale told by an idiot' and ignores the pandemic's economic fallout, Jim Cramer says

2020-08-19 14:15:36, finanzen.net GmbH, markets.businessinsider.com

Content Categorization
/Business & Industrial
/News/Business News/Financial Markets News
/Finance/Investing

Word Count:
416

Words/Sentence:
52

Reading Time:
2.77 min

Reading Quality:
Adept

Readability:
13th to 15th

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The S&P 500 closed at 3,390 points on Tuesday, notching its first record close since February 19 and marking the shortest bear market since 1929, according to CNBC.

Financial, industrial, retail, leisure, and other stocks have lagged behind, as investors fear slower economic growth, lockdowns, and travel restrictions will hammer earnings for months to come.

Meanwhile, the Nasdaq closed at 11,211 – a striking rebound given it traded below 7,000 at its lowest point in April, an increase of some 60%.

Cramer said it was "not just wrong but actually laughable" that the indexes' fresh highs reflect a "V-shaped" economic recovery.

"The winners in this market are the companies that are most divorced from the underlying economy," Cramer said.

The S&P 500 and Nasdaq's new record highs show how divorced the stock market is from the economy, Jim Cramer said on Tuesday.

"The S&P's new highs are a tale told by an idiot," the "Mad Money" host said during his show.

Cramer dismissed the idea that the market recovery reflects a V-shaped economic recovery, as the Dow Jones Industrial Average would have rebounded too in that case.

"The winners in this market are the companies that are most divorced from the underlying economy," Cramer said.

Visit Business Insider's homepage for more stories.

Keywords
Finance, Jim Cramer, s&p 500, Investing, Dow Jones, Pandemic, NASDAQ, Stocks, Markets, Economy

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