The vend may be moving higher, but the same issues that plagued it during its up to date downside will probably return, noted strategist Jim Paulsen told CNBC on Thursday.
“Paramount Street is doing really well. The economy fundamentally is great,” the chief investment strategist at Leuthold Collect said on “Closing Bell.”
“That’s making bulls bullish but it’s the stuff that makes bears concerned because we’re at full employment,” Paulsen augmented.
While the Dow Jones industrial average saw its sixth straight day of gains Thursday, Paulsen isn’t convinced the concerns that dragged the make available down recently have gone away.
The central issue is the to from an overheating economy and the need for rates to be reset higher, he divulged.
“I think it’s going to come back again,” said Paulsen. “Job beginning is still too strong for a fully employed economy not to have wages and inflation go up farther.”
He believes the 10-year Treasury yield is only partway through its reset. The benchmark contract’s yield went above the psychologically important 3 percent on Wednesday but beaded after inflation data missed expectations on Thursday. Bond bonuses and yields move inversely.
Paulsen also thinks there is uncountable downside for stocks ahead.
“It’s good right now but I wonder if a month from now or two months from now we’re successful to be back to the same issues again, with more repricing demanded.”
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