CNBC's Jim Cramer thinks that there could be too much pessimism on Wall Street about a recession or that we are currently in a recession. He thinks that tariffs will hurt the U.S., causing higher prices, and there may also be shortages in certain products. With this statement he also said, "But recessions revolve around employment, and there are still so many more jobs than we have people to fill them". He thinks that companies aren't laying off employees because they not be able to get workers back when economic circumstances improve. It is difficult to derail an economy that is creating jobs still. He also mentioned that tariffs are a government mandated supply shock but adding that supply shocks don't always lead to recessions. Customers may begin to switch to more budget friendly alternatives, moving to companies like Costco and Walmart. This is an interesting take from Jim Cramer and differentiating from most of Wall Street. It will be interesting to see if this Friday's labor report will prove his theory truthful.
I think the uncertainty in the markets right now makes it hard to predict a recession, but the strength of the labor market is a positive sign for the economy in uncertain times.
ReplyDeleteThat is an interesting point that you bring up about companies not laying off employees because of fear that they won’t get them back when conditions actually do improve.
ReplyDeleteIt’s interesting how he focuses on strong employment as a sign of economic resilience, especially when most of Wall Street seems more focused on the negatives.
ReplyDeleteJim Cramer brings up a good point, if companies are still hiring and not laying people off, maybe the economy isn’t as weak as some think. It’ll be interesting to see if the upcoming jobs report supports his view.
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