Is there a disconnect between Wall Street and Main Street?
Last week, as many Americans took to the streets to protest the killing of George Floyd, racial inequality in the U.S. and police brutality, Wall Street seemed focused on the positivity around the U.S. reopening after the economy was shut down due to the coronavirus pandemic.
Kenny Polcari, senior market strategist at SlateStone Wealth, joined TheStreet to talk about the disconnect.
Watch the full video above for more.
A lot of questions came about last week after the protests and the riots we saw across the United States of whether or not Wall Street and Main Street are- they ha- there's a disconnect there. We saw a lot of rallying in Wall Street when Main Street didn't seem to be feeling that optimism.
Well, a- a- and you know, we could spend all day talking about kinda that disconnect because there is also a disconnect there, right? There are many parts of Main Street that aren't really connected to Wall Street. Either they're not invested, they've got money invested in their own businesses or they've got money invested on their assets and so, therefore, they don't necessarily respond to the excitement created by the market. And so, therefore, there is that disconnect. The other disconnect is look, there's still a lot of people in this country suffering. 40 million people are still out of work and the unemployment benefits are gonna start to run out, the extra unemployment benefits that they built into it are gonna start to run out. So there is some concern.
So it's right, and it's- and it's- and it's not wrong for people to see that disconnect and I agree with it, which is why... another reason which is why I think the broader market is at one point gonna pull back when it once again starts to focus on the real depth of where we are. With 40 million people still out of work and Friday's Job Report was great. You know, plus 2.5 million but that was really furloughed workers that were just called back. That- those were not creating new jobs, those were jobs that were just furloughed. So we still have 38 million more jobs to go before you can really talk about real job creation, right? And so I think once the market starts to focus on that, and it will in the- over the course of the next couple of days as people kinda digest the report and talk about it.
Um, the- that- we'll see some consolidation. But I- and I think that that's fair. I also think that it's healthy for the market to consolidate, but I also do understand that disconnect between what you say is Main Street and Wall Street because there absolutely is a disconnect at times, um, and some of that clearly driven by just people that are not involved in the market because their money has been invested in other ways.
Kenny, as always, thank you for your insight and for joining us today. And for more-
You can follow Katherine Ross on Twitter at @byKatherineRoss.