One chart shows how Main Street feels blue as Wall Street hits record highs
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Juliana Kaplan
Feb 12, 2021, 21:16 IST
Labor organizations called for car caravan demonstrations across the US to protest record unemployment on June 17.OLIVIER DOULIERY/AFP via Getty Images
A chart from Bank of America Research analysts how the S&P 500 is booming.
It also shows a stark disconnect from the rest of the economy.
While the economy is projected to grow, unemployment is likely to stay high.
In a chart, BofA researchers show how as the S&P 500 has climbed to record highs, Main Street indicators have in most cases stayed far below pre-pandemic levels.
The Small Business Optimism Index, which gauges the state of small business based off 10 key indicators, also dropped in January, falling below a historic average.
Notably, the CBO projections don't factor in any additional stimulus relief, including the $1.9 trillion relief package currently being negotiated. David Kelly, the chief global strategist at JPMorgan Funds, said the potential positive impacts that the stimulus package could include bringing the unemployment rate below 5% by the end of the year.
Wall Street and Main Street are still "historically disconnected," as Insider reported in late 2020 - and that could just send stocks higher.
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