Despite the S&P 500 seemingly hitting new record highs every day, investment guru Jim Cramer has quite a dismal view of today’s economic landscape.
“The real world is much worse than the stock market indicates,” Cramer said on CNBC.
The “Mad Money” host says he expects most companies to post weaker earnings than they did last quarter.
“I literally do not have a company that is having a better quarter,” Cramer said.
“I would rather say the stock market is wrong than I would say the real economy is wrong,” Cramer said.
To be sure, the S&P 500 hit a new all-time high on Friday, as U.S. Vice President Mike Pence's decision to defer a planned speech on China policy rekindled optimism over trade talks between the world's two largest economies, Reuters reported.
The decision was taken amid "positive signs" that trade talks with China could be back on track, the Wall Street Journal reported, citing a senior administration official.
The three main indexes were trading in a tight range rose on the report, with the benchmark S&P 500 index hitting an intraday high of 2,964.15, a day after closing at a record 2,954.18.
The United States and China have said that they would restart their trade talks after a long lull at the Group of 20 summit in Japan next week.
"Investors are cautiously optimistic about the G20 summit. If they make progress then markets will celebrate that," said Michael Antonelli, market strategist at Robert W. Baird in Milwaukee.
Stocks had their worst monthly performance this year in May on fears of the impact of the prolonged trade war on global economic growth.
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