Paulsen: Stocks Are Attractive, Gold Is Not

Wells Capital’s Jim Paulsen says the stock market environment “remains very good”, though he advises shifting out of stocks that have done well in the first quarter and into those that have lagged. Paulsen tells CNBC that the S&P 500 may be cheaper than it was when it reached its high of 1365 last year, because earnings are up and interest rates have fallen further. He thinks a correction is coming, but says it’s hard to tell when, and thus recommends staying in the market. He sees a couple factors acting as catalysts for the market later in the year, including better-than-expected GDP growth and a rebound in emerging market economies. Paulsen also talks about why he’s not crazy about gold, offering some interesting takes on gold valuations right now.