When I heard Jim Paulsen was reported to be negative on stocks right now it made me think about my own positivity for my shares in 2018. Jim is a smart guy and was one of the US equity experts who made me comfortable about my positive calls for stocks in the scary period of 2009-2010, post-GFC.
Jim is now chief investment strategist at the Leuthold Group and predicts a stock market correction in 2018, which is not really surprising, given the US stock market is up 240% since March 2009 and has gained over 20% this year.
So, Jim’s warning makes a lot of sense but it should not be taken that he sees a market Armageddon around the corner. In fact, he actually said he did not “see the end of the recovery”, nor did he think that a bear market was coming soon, but he did think we’d see volatility this year.