Paulsen: Bull Market Needs a 15 Percent Correction

During a recent interview on CNBC, Leuthold Group’s chief investment strategist said, “I think a good gut check to sentiment, like a 15 percent correction, might be just the ticket to extend this bull market.” Jim Paulsen said a correction is necessary to reflect rising interest rates, peaking earnings, and slower economic growth, adding, “What we need is a lower valuation, I think, to sustain a different environment if this recovery is going to continue.”… Read More

How 3% Yields Could Change the Investing Landscape

Rising Treasury yields are “prompting investors to dust off their playbooks for how to trade in an era of relatively higher rates,” according to a recent Bloomberg article. The article cites comments by Jim Paulsen, chief investment strategist at Leuthold Group, who wrote in a client note, “Historically, the stock market has done OK with rising inflation, provided economic momentum was also rising.” Paulsen added that stocks have performed well in moderate economic growth climates… Read More

Jim Paulsen Says Investors Should “Proceed with Caution”

A recent Bloomberg article describes the start of April as “ugly” for the stock market, citing comments by Jim Paulsen of Leuthold Weeden Capital Management that other asset classes have also showed signs of tension so far this year. Paulsen created the “Markets Message Indicator” to track such tensions, and the article reports that the indicator is now “rolling over after peaking in January at one of its highest levels in the past 40 years,… Read More

Market Experts Offer Predictions for 2018

A recent article in Money shares the views of a panel of market experts (including Rob Arnott, Jim Paulsen and Liz Ann Sonders, among others) regarding the state of the bull market and the risks and opportunities they see going forward. Here are some highlights: Can the bull market persist? While Sonders remains bullish, she says, “I think we have to start to be mindful of some of the risks.” Paulsen adds that he doesn’t… Read More

This Bull Market Isn’t Happy

The current bull market’s backdrop of low volatility, high valuations, and tightening monetary policy are worrisome factors for some in the investment community, according to a recent article in The New York Times. Jim Paulsen, a market strategist for the Leuthold Group, describes the above factors as “scary,” adding that most questions he hears from clients and audiences at speaking engagements relate to what he believes will finally trigger a major correction. “No one ever… Read More

Jim Paulsen Sits Between Bull and Bear

Where the market is headed, says Wells Capital Management’s chief strategist, is more like a “bunny” market than a bear or bull. In last week’s Barron’s, Jim Paulsen explains that a bunny market, “doesn’t typically suffer a bear market collapse nor does it rise as fast as a bull market. We expect the bunny to dominate the balance of this recovery cycle.” He shares specific insights about the economy: Economic growth: Paulsen sees a global… Read More

Paulsen: Three Possible Economic Outcomes for the Markets

Jim Paulsen, chief investment strategist at Wells Capital Management, told CNBC last week that the current situation “lends itself to a market that’s vulnerable to kind of bouncing around a lot but not really going too far.” He thinks that ultimately, what the Fed does “is going to be determined by the economy” and he sees “three major outcomes possible: One is that the global and the U.S. economy just simply roll over here; that’s… Read More