Tags: George Floyd Protests | jim cramer | market | conscience | stocks | unrest | social

Jim Cramer: 'Market Has No Conscience' as Stocks Rise Despite Unrest

By    |   Tuesday, 02 June 2020 01:56 PM

Investment guru Jim Cramer said the market apparently “has no conscience” and is blind to social justice because Wall Street stocks continue to rise despite the continued racial violence sweeping the nation.

“At the end of the day, the market has no conscience. Investors are simply trying to make money, and that’s why they’re crowding into the stay-at-home economy stocks,” Cramer said on CNBC.

“The stay-at-home economy just got a major extension for many investors [and] right or wrong, thoughtless or cerebral, it’s worth exploiting,” the “Mad Money” host said.

The S&P 500 and the Dow Jones indexes hit three-month highs on Tuesday as optimism about the reopening of the economy after weeks of coronavirus lockdowns countered concern over more disruptions from the street protests that have spread across the country.

Meanwhile, Cramer added that the market generally doesn’t react to social justice if demonstrations don’t impact corporations’ bottom line.

“Until very recently, nobody was investing with an eye toward making the world a better place — whatever that might mean,” he said. “While there’s now a younger generation that invests with their hearts as well as their heads — and I share a lot of that sentiment — for the most part, people still pick stocks because they’re trying to make money.”

He is worried, however, how the mass demonstrations nationwide could impact public health as the country continues to grapple with both the coronavirus pandemic and tough economic conditions.

“That’s why I’m concerned that we’re going to get a huge second wave of infections, far earlier than people thought,” he said. “Plus, in the places where protests turned violent, it gives businesses another reason to shut down or keep their employees working remotely. From this stock market’s perspective, everything that happened this weekend means the stay-at-home economy will last longer than we thought.”

Improving economic data, trillions of dollars in stimulus and the restarting of businesses have helped the benchmark S&P 500 recover about 40% from its March lows, leaving it only about 10% below a record high hit in mid-February, Reuters explained.

"The U.S. equity market continues to rally despite the fact that we're clearly in a recession," said Keith Bliss, managing partner at iQ Capital (USA) LLC. "Most investors believe that companies will be able to come out of this on the other side, actually in better shape.. more efficient and more streamlined."

Traders were keeping a close eye on tensions between the United States and China over the novel coronavirus and trade, as well as the anti-police brutality marches and rallies that have turned violent in some cities.

Overnight, demonstrators set fire to a strip mall in Los Angeles, looted stores in New York City and at least five police officers were hit by gunfire, hours after President Donald Trump vowed to deploy the U.S. military to regain control.

"If this goes on much longer the market will start to reflect the nervousness of the populace and the economy here in the United States," Bliss said.

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Investment guru Jim Cramer said the market apparently "has no conscience" and is blind to social justice because Wall Street stocks continue to rise despite the continued racial violence sweeping the nation.
jim cramer, market, conscience, stocks, unrest, social, protest
Tuesday, 02 June 2020 01:56 PM
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