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Wall Street veteran Jim Paulsen believes that Jerome Powell’s dovish speech at Jackson Hole has reset the clock for the stock market’s bull rally.
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Paulsen sees the Fed’s intention to cut interest rates as a positive force that will provide new support for stocks.
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He expressed optimism about the economy, citing strong consumer and business balance sheets as well as high levels of money market funds.
During a recent CNBC interview, Paulsen described the Fed’s actions as ushering in “a brand new bull market” in stocks by unlocking positive forces such as falling interest rates and accelerating monetary growth.
According to Paulsen, the current conditions, including positive real GDP growth and continued disinflation, are setting the stage for a broad-based rally in stocks.
“I think it’s hard for a recession to find something to bite on, a vulnerability to bring us down,” Paulsen said, emphasizing his bullish outlook on the economy.
Looking ahead, Paulsen highlighted the importance of the Fed’s intention to ease monetary policy, stating that this will provide sustained support for stocks well into the next year.
For more information, you can read the full article on Business Insider