Paulsen: QE Has Had Little Impact

One strategist who likely is pleased with the Federal Reserve for finally beginning to taper its asset purchasing plan: Wells Capital’s James Paulsen. Paulsen said last week at the Wells Fargo 2014 Investment Outlook conference that quantitative easing “has not had much impact,” except for there now being $3.5 trillion in bank reserves that has not reached the economy, the Las Vegas Review Journal reports. The Fed, he said, “should have stopped (quantitative easing) a… Read More

Paulsen on the Debt Crisis, and Earnings Upside

Wells Capital’s Jim Paulsen says he has been viewing the debt debacle in Washington as a buying opportunity, not a long-term problem. Paulsen tells CNBC that he’s high on non-U.S. stocks right now; in the U.S., he likes cyclical areas like industrials, materials, and financials. Paulsen also talks about why he thinks third-quarter earnings and revenue results may be better than most expect.

Paulsen: Market “Digesting” Big Issues

Wells Capital Chief Investment Strategist James Paulsen says that, with the market digesting several major issues, he expects stocks to remain in a trading range for the remainder of the year. Paulsen tells Bloomberg that the market is digesting three major things: a big upward move in multiples; a repricing of long-term interest rates; and the Federal Reserve’s tapering of its asset-buying programs. He thinks the bull market won’t be stopped, but that the market… Read More

Paulsen: Tapering Will Lead To More Confidence, Not Less

Wells Capital’s James Paulsen thinks that the “great Fed myth” about the stock market rally being a “sugar high” will soon be debunked. Paulsen tells Bloomberg he thinks the market’s moves this year have mainly resulted from increased confidence, not the Federal Reserve’s policies, evidenced by rising price/earnings multiples. CEOs remain hesitant, however, which has limited capital spending. Paulsen thinks part of their hesitance is a concern that the Fed, which has continued its quantitative easing… Read More

Paulsen: Fed A Hindrance To Long-Term Gains

Wells Capital’s James Paulsen says that, with valuations low compared to historical standards, stocks could provide investors with double-digit annual returns over the next decade — if the Federal Reserve gets out of the way. “In the post-war era, when the inflation rate has been as low as it is today, the U.S. stock market PE multiple has been higher than it is currently almost 70 percent of the time,” Paulsen writes in a recent… Read More

Paulsen: This Isn’t a Sugar High

Wells Capital’s Jim Paulsen thinks stocks are on their way to record highs, and says the economy is stronger than the Federal Reserve is giving it credit for. Paulson tells Bloomberg that he sees growth in the U.S. continuing to outpace expectations — he expects GDP to grow at about 2.5% to 3% this year. He also thinks factors like an improving housing market are causing confidence to rise. Treasury yields should be about 2 points higher than… Read More

Paulsen: Strengthening Economy Driving Market

Wells Capital Management’s Jim Paulsen says the recent rally in stocks isn’t a sugar high resulting from the Federal Reserve’s actions. “This [rally] is a fundamentally driven advance in the stock market by growth in the economy,” Paulsen tells CNBC, pointing to economic stabilization in Europe and China, and improvement in the U.S. He also says he thinks the coming debt ceiling debates will have less of an impact than some think on the markets.… Read More

Could Wage Inflation Rebound Soon?

Wells Capital Management’s Jim Paulsen says that declining wage inflation — which has allowed the Federal Reserve to continue its “crisis-like” loose monetary policy — may be coming to an end sooner than many think.  Paulsen says that for the past 30 years or so, wage inflation has continued to decline for two-and-a-half to four years after the end of recessions. “Many believe the continued deceleration of wage inflation in this recovery is a unique… Read More

Paulsen Sees Signs of Solid Growth

Wells Capital Management’s Jim Paulsen sees a number of positive signs for the U.S. economy. Paulsen tells Bloomberg TV that third-quarter growth may have been around 3%, and that a number of factors — housing, job creation, and lending activity among them — are providing the economy with a boost. He sees growth coming in at about 3% in 2013.

Paulsen: Rally Has Legs

Wells Capital’s Jim Paulsen thinks the stock market’s recent climb has more to do with improving fundamentals than Federal Reserve policies — which means the rally could have some powerful legs. “I think it’s going to be a multiyear recovery,” Paulsen told MarketWatch’s Howard Gold. “I think the great bulk of this move has been about fundamentals rather than the [Federal Reserve]. I think the economy has begun to reaccelerate.” Among the signs Paulsen sees… Read More