Cramer: Reality Is “Much WORSE Than Stock Market Indicates”

by | Jun 24, 2019 | Headline News | 20 comments

Businesses in the United States are having a harder time in the real world than the stock market indicates, says CNBC‘s market expert Jim Cramer. “The real world is much worse than the stock market indicates,” Cramer said on Squawk Box. 


Cramer stated that out of the “dozens of company executives he’s spoken with”, not one of them has indicated they’re expecting a stronger quarter since trade tensions between the United States and China have escalated. “I literally do not have a company that is having a better quarter,” Cramer said.

While it’s understood that president Donald Trump’s plans are to make trade more “fair” between the U.S. and China, the negative effects, or the “unintended consequences” of the tariffs have become a burden on businesses and consumers. Tariffs are rising the prices of goods and services and while the stock market continues to inch upwards. This means more and more average Americans are being left in the dust. Sticking one’s head in the sand doesn’t change reality.

Economic experts tend to look at all of the information across several industries to get a complete grasp on the economy. But once that is done, reality sets in. Companies across the retail, lending, materials, and housing markets have noted increasing pressure from Washington and Beijing, both of which are placing billions of dollars worth of punitive tariffs on each others’ imports. Tariffs that are being wholly paid for by the public.

When looking at the gains in the stock market, Cramer said he thinks it’s just “wrong” to assume the overall economy is centered around the stock market. “I would rather say the stock market is wrong than I would say the real economy is wrong,” Cramer said.

Heading into next week, investors will be closely watching the meeting of President Donald Trump and Chinese President Xi Jinping at the G-20 summit in Japan, according to CNBC.  The two trade war obsessed leaders are expected to reengage on trade talks under the threat of even more levies. That means those already living on the financial edge could eventually be pushed to the brink and fall off.  If that happens to enough people, there will be a recession and many financial gurus expect the next deep recession to be the last one.

James Davis, a financial expert at Future Money Trends says there are ways to protect yourself from the inevitable. Buy gold, but we all know to do that. Diversification is the key, according to Davis.  Make sure you’ve got an array of assets that hold value, and make sure some of those are liquid. They don’t make you much money in good times but will be invaluable when things take a hard turn for the catastrophic and the markets begin their downward tumble.


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    1. Him

      If the market tanks just before the 2020 election, it will take the Trump administration and the Republican party with it. Trump has been a disaster on immigration. I know the Dems and Rinos have blocked him, but he needed to overcome them and he hasn’t. He has been weak on the 2nd Amendment. Where are of the conservative judges he claims to have appointed? He needs to do better at communicating that info. Prep for the Marxist take over that might come in the 2020 election. Time is short.

      • Kevin2


        Look at Trumps shortfalls through this lens; the alternative was Hillary.

        • Him

          K2, for sure.

      • Clown World

        In my blue state, there are gradeschoolers, never especially trained to be racist, who are smart enough to put whites on one side of the line and Mexicans on the other. (ie, Treaty of Guadalupe Hidalgo.)

        To use an analogy from a movie —
        Why is the cynical guy nicknamed ‘Joker’ (who tells jokes in spite of authority, who thinks instead of staring off into space) paired with the struggling guy nicknamed ‘Gomer Pyle’.

        These odd couple arrangements (speaking of demographics) are by design, not an accident.

        “It is traditionally the ringmaster’s job to use ***hyperbole*** whenever possible while introducing the acts to enhance the expectations of the audience. Declarations of the “biggest”, “most dangerous”, “amazing”, “spectacular” and similar expressions are common.”

        • Clown World

          “A ringmaster may interact with some acts, especially the clown acts, to make the various acts part of a seamless circus performance. Ringmasters have become an integral part of the many circus shows and sometimes will be involved in elements of some of the acts performances.”

          Or, you put on your f- horse blinders, and count with your feet. How can this person be measured, in the dumbest terms humanly possible.

          How can you identify a liar, a carny once asked me. Liminality and subjectivity, rather than what is palpable and can be weighed. Tally marks can be used to ID a liar.

          • Anonymous

            If they still used tally marks to mark liars Trumps face would be unrecognizable. They’d run out of places to mark. I know I know, Hellary would be worse doesn’t mean he’s not a liar.

    2. john stiner

      Do you want to know how to truly measure the reality of the economy?

      Next time you go and get gas for your car, glance at the other gas pumps. You can see how much the other drivers purchased.

      I was shocked, People were buying $5.00, $7.00 and $10.00 in gas. Nobody was filling up their gas tanks to full.

      That says a lot.

      • Stuart

        Yet the mall and restaurant parking lots are full. The damn mall had to start providing valet parking to help with the traffic jam.
        What the hell?

        • Mensa Graham

          In Georgia there are help wanted signs everywhere and our malls restaurants are doing very well. Quite a few out of state tags too. Very few illegals too. I believe several states have found how to self-deport while making the rules too difficult for liberals to figure out. ‘Nuff said there. It is refreshing to see young Americans of all stripes working in fast food, department store and yard work. I’ve even seen a couple of commercial yard work women that could kick my rear. Good times.

      • rellik

        I suppose it is where you live.
        My local fuel guy gives a $0.20
        per gallon price reduction for cash
        on the weekends. Only locals know
        about this, tourists do not.
        That is when I fill up and
        just about everybody else in town does the same.
        They just do bare necessity during the week.
        ( $3.79 during the week).
        Given that the closest Walmart is 45 miles away,
        we drive a lot.

        • Stuart

          Your closest Walmart is 45 min. away?
          Sounds like paradise.

    3. Kevin2

      The stock market has been legally but unethically propped up with stock buybacks, with fiat currency to boot, that were at one time felony illegal because of their manipulative fraudulent nature. Post Glass-Steagall deregulation its a casino. Regardless of interest rate debt still requires servicing of the principal. In effect the stock markets rise is divorced from the real economy however its fall will have tangible impact.

    4. Honeypot

      With an economy that is unpredictable, skills, knowledge, and ingenuity become your saving grace.

      In bad times, businesses fail and employees are left out in the cold. If you lose your job and can’t find one to replace it, what will you do? If you are properly prepared you will have a contingency plan in place already. Not having a 9-to5 affords you free time to turn your part-time at home supplemental income maker into a fulltime venture. Just be prepared to work long hours and twice as hard for yourself as you did for your employer.

      Just pick something to do that other financially challenged clients will be likely to pay for. Otherwise target the rich as potential clients. No matter how tight economies get, some will always have money and will be willing to spend it for something worth while.


    5. cranerigger

      “FAIR TRADE” is the goal as stated in the article. Want somebody to blame – try the congress-critters and other idiots that traded away our manufacturing market share. This is an effort to make other countries trade with the USA in a FAIR way. Decades of economic cretins in Washington D.C. put us in this position to have some SHORT TERM pain.

    6. Anonymous

      Trump is poor mans idea of a rich person. But keep believing he’s rich …… and going to MAGA. Dumdedumdumdum.

    7. JRS

      Cramer should know as he’s part of the problem.

      Capitalism has two sides. One is the producer side where actual products are made and sold at profit. The other side is the parasitic side where income is derived by unearned income. In 1984 the parasite’s income surpassed the producer’s income for the first time. It has continued to grow, dwarfing the real economy. The FIRE section of the economy, where income is derived from fees, compound interest, dividends, and capital gains, has taken over and is killing the productive sector.

      This is where you end up when currency can be created at will and compound usury tacked on to it. An anemic real economy with a bloated leech sucking the lifeblood out of it.

    8. Stuart

      Jim Cramer is an almost perfect contrary indicator.

    9. Anonymous

      CRAMER is the guy that told every one to buy Wachovia right before the bottom fell out in 08 a lot of people bought it on his rec and lost big time

    10. JimB

      CRAMER is the guy that told every one to buy Wachovia right before the bottom fell out in 08 a lot of people bought it on his rec and lost big time

    11. buttcrackofdoom

      i talked to my parts wholesaler last week, and he mentioned things are about as bad as they have EVER been. i see homeless by the dozens everywhere i ride my bike…’s a tale of two cities, in reality.

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