CNBC’s Jim Cramer Isn’t Buying ‘V-Shaped Recovery’ Despite S&P 500 Hitting All-Time High: The Economy is in ‘Precarious Shape’

Despite the fact that the S&P 500 just hit a record high, CNBC’s Jim Cramer is skeptical about the state of the U.S. economy.

Speaking on Mad Money Wednesday night, Cramer argued that the stock market is not an accurate barometer of the “broader economy.”

“We’ve had a magnificent V-shaped recovery in the stock market, but the stock market’s not a great reflection of the broader economy anymore,” Cramer said. “If anything, the actual economy’s in precarious shape, especially now that the government’s stimulus package has run out and Congress went home for the summer rather than trying to come up with a replacement.”

Cramer went on to note that it is predominantly tech stocks that are thriving in the pandemic. But small business, which is vital to the economy’s overall health, remains in a bad spot. And overall, Wall Street’s gains have not yet made their way to Main Street.

The CNBC analyst further argued that bank stocks are a far better indicator of economic progress.

“I’ll start believing in a V-shaped recovery the moment we get a V-shaped recovery in the bank stocks, but not before,” Cramer said. “Until then, the real boom will only come with a vaccine. Everything else is either artificial and about to run out of gas, or digital — which is very good for the stock market, but very bad if you get obsoleted.”

Watch above, via CNBC.

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